I plan on no longer staying at my mom's friends house because they were not giving out red packets for Chinese new year.
Why do you think they cannot afford red packets for Chinese New Year?
They feel like selling them instead of giving them out.
It's understandable to want to take part in a tradition when celebrating a holiday, but its wrong to expect something when visiting others. You may leave people with the impression that you're just seeing them to get free stuff.
I'm not going to see them now because of this. I'll have to travel to the mainland to buy stuff for Chinese new year.
It is definitely really at issue that you're in right now. I think it's appropriate to distance yourself from them if they're expecting money out of you.