The spending is no small feat as you stated. The tradition here is not to exchange gifts like Christmas, but red packets - little envelopes full of money. This is so prevalent that it's even built into the ubiquitous chat app, Wechat, with an option to send digital red envelopes.

China is more capitalist than Americans can imagine, and the recent boom of wealthy middle class seriously want to flaunt their cash. So yeah, totally understandable (Korea, Japan, Vietnam etc share the same cultural traditions)