China's Retail-Sales Recovery Trajectory Likely Uneven

Dow Jones10-21 10:27

0227 GMT - How sustainable the recovery of China's retail sales is remains uncertain, say Nomura's Jizhou Dong and Summer Qian in a note. The country's total retail sales rebounded slightly in September, driven by the Mid-Autumn Festival period, which took place earlier than in 2025. They also cite multiple marketing campaigns launched by shopping malls. However, retail sales of merchandise by enterprises above a designated size still follow a downtrend in September, they note, likely indicating compressed spending willingness or capacity of the broader consumer base. Nomura continues to prefer companies with visible margin trends and attractive valuations, such as Anta Sports Products. It also likes Yum China and Midea for their sector leadership and management's attention to shareholder returns.

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