The consumer sector surged collectively today (December 19), with new retail, food and beverage, and influencer economy stocks leading the gains. Over 10 stocks in the sector hit the daily limit-up. The rally follows a series of supportive policies, with analysts suggesting potential upside surprises in supply and demand-side policy measures for 2026.
The consumer sector dominated gains as the A-share market rose broadly, with major indices climbing and advancers outnumbering decliners. Stocks like Dongbai Group, Zhejiang Meida, Shanghai Jiubai, Tianchuang Fashion, Central Department Store, and Manor Dairy surged to limit-up. Notably, Dongbai Group has logged seven limit-ups in the past 11 trading sessions.
According to a notice on the Ministry of Commerce’s website, pilot programs for new consumption formats, models, and scenarios (dubbed the "Three New" initiative) will be launched in 50 cities, including Beijing. A recent meeting emphasized the initiative’s role in boosting high-quality supply and demand, urging local authorities to drive innovation and reform.
Separately, the Ministry of Commerce, the People’s Bank of China, and the National Financial Regulatory Administration jointly issued a notice to strengthen financial support for consumption upgrades. Measures include enhancing consumer finance for durable goods and digital products, promoting installment payments, and exploring financial backing for emerging sectors like green consumption, AI-driven consumption, and IP-related consumption.
The Central Economic Work Conference prioritized domestic demand expansion, calling for deeper consumption stimulus efforts, improved income growth plans, and the removal of unreasonable consumption restrictions. Analysts from Guotai Haitong Securities and Dongxing Securities highlighted policy tailwinds for 2026, with a focus on sustainable business models in new consumption trends like health-focused products, smart consumption, and cross-border opportunities.
Shenwan Hongyuan noted continued divergence in November’s consumption data, with services and dining maintaining strong growth despite some pullback in goods consumption. The firm recommends e-commerce, travel, duty-free retail, gold jewelry, and digitally enhanced trade services as key beneficiaries of policy support and economic recovery.
Galaxy Securities identified new product categories, particularly health-focused foods, as a long-term investment theme in the food and beverage sector, expecting rotation within emerging segments.
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