According to a report by Bank of China International, consumers have become more cautious this year due to the long-term economic impact of the COVID-19 pandemic. Fortunately, the government has begun to address the local government debt issue and take measures to stimulate consumption.

The bank believes that the focus of the market next year will still be on how and when the government will implement policies to boost consumption. In the absence of large-scale stimulus measures, it is expected that this cycle of discretionary Consumer goods will be more challenging than the previous cycle in the mid-2010s.

The bank indicated that although there are still growth opportunities in the domestic market, the demand for innovation in the discretionary Consumer Industry is expected to further increase. At the same time, overseas markets may present opportunities that may be easily accessible for leading Chinese enterprises. The preferred choices in the CSI China Mainland Consumer Index are ANTA (02020.HK), Shenzhou (02313.HK), HAIER SMARTHOME (06690.HK), Trip.com (09961.HK), and POP MART (09992.HK), as these companies have innovative advantages and exposure in overseas markets.