Citi Recommends 10 Large-Cap Chinese Consumer Stocks as Policy Supports Consumption Growth

According to Citi's latest research, following the State Council's approval of the consumption expansion plan, the brokerage expects Chinese discretionary consumer stocks to see improved market sentiment. While Citi does not anticipate immediate significant consumer stimulus from the new policy, it believes sentiment will gradually improve, particularly amid recent sector rotation.

Citi's preferred 10 large-cap Chinese consumer stocks with attractive valuations are Midea Group (00300), ANTA Sports (02020), Li Ning (02331), Chow Tai Fook (01929), China Mengniu Dairy (02319), Haidilao (06862), Tsingtao Brewery (00168), Bosideng (03998), China Resources Beer (00291), and WH Group (00288). Top picks in China's discretionary consumer sector are ANTA, Midea, and Atour Lifestyle (ATAT.US).