But we also see some of the premiumisation trends are still happening in China. For example, if we look at higher-value consumption, such as luxury products, their sales are decent even though the growth decelerated from a high base. And for food and beverage, we can see some of the premium liquor and premium beer brands are still selling well. It could be called a K-Shaped recovery.
China’s much beaten down markets are seeing some recent stirring of investors’ interest. A team from FSSA Investment Managers shares their views on some pertinent issues.
How do you see the concerns around consumption downgrading?
Helen Chen, portfolio manager with FSSA Investment Managers: Recently, consumption downgrade is a concern widely held in the investor community. In my view, it reflects the reality on the ground. On the demand side, incomes are not growing in the near term, and on the supply side, competition between companies is quite fierce at the moment.
