China Travel HK (00308) surged over 13% at one point. As of press time, the stock was up 8.22% to HK$1.58, with a turnover of HK$310 million.

On the news front, recent information published on China Travel International's official website shows that China Travel International, together with China Travel Capital and Jilin Provincial Tourism Holdings Group, has acquired Jilin Songhua Lake International Resort Development Co., Ltd. and Beijing Wanbingxue Sports Co., Ltd., both subsidiaries of China Vanke Co.,Ltd.

In its interim results announcement, China Travel HK disclosed that it entered into equity transfer agreements with Changchun Vanke Real Estate Company and related parties, under which China Travel HK agreed to acquire a 75% stake in Jilin Songhua Lake International Resort Development Co., Ltd. held by Changchun Vanke. China Travel HK also entered into equity transfer agreements with Vanke Hotel Management Co., Ltd. and related parties to acquire a 75% stake in Beijing Wanbingxue Sports Co., Ltd. held by Vanke Hotel Management.

CICC noted that the company expects to complete the transaction in the second half of 2025. The project is expected to receive over 350,000 visitors annually during its stable operation period, generating revenue exceeding RMB300 million. The firm expects this to contribute incremental profits to the company. Additionally, the company focuses on four major natural and cultural scenic destinations in Ningxia, Yunnan, Xinjiang, and Guangxi, adopting both asset-light and asset-heavy approaches to build flagship brands.

Citi stated that despite the weak macroeconomic environment, it has observed improvements in the company's operational and business development quality, with enhanced hotel business performance and stable transportation and travel document services, which offset the negative impact of fair value losses on investment properties and theme park impairments.