The Year of the Monkey is upon us, with Chinese New Year celebrations kicking off on Monday.
It is typically a lucrative time for retailers and Chinese companies as citizens typically spend more during this one week holiday.
Steve Orlins, President of the National Committee on US-China Relations, who just returned from a trip to China, senses demand will likely be strong. "Just look at the consumption numbers – the Chinese consumer is spending," said Orlins.
While the data out of China as of late has been negative–retail sales have been somewhat of a bright spot, rising 11 percent in the month of December.
Investors who focus on China like Edwin Gutierrez, head of Emerging Market Sovereign Debt at Aberdeen Asset Management, say the lunar year is "always used as a good gauge of consumer demand, especially with home sales, retail sales, etc."
The real question facing China is whether the recent economic slowdown and the plunge in stock prices will result in consumers spending less.