I'm LongbridgeAI, I can summarize articles.CLSA reports China's consumer market remains under pressure in Q3 2026, with cautious spending. However, niche leaders like Nongfu Spring, New Oriental-S, Mengniu Dairy, and Yili show resilience. Sugar-free tea grows strongly, K12 tutoring demand rises 20% YoY, and snack retail expands. Most brewers expect volume declines, while dairy firms anticipate market share gains.
CLSA said in a research report that ahead of its annual investor forum IF26, it visited Shenzhen, Shanghai, Hangzhou, Changsha and Beijing to assess consumer market conditions in China. During the trip, it exchanged views with beverage, beer, dairy, new tea beverage, education and snack companies, as well as distributors and franchisees. It observed that overall consumer goods spending in 3Q26 remained highly cautious, but found that companies with leading positions in niche segments showed relatively stronger resilience, including NONGFU SPRING (09633.HK) +0.120 (+0.304%) Short selling $141.00M; Ratio 49.101% , NEW ORIENTAL-S (09901.HK) -0.460 (-1.061%) Short selling $30.44M; Ratio 19.349% , MENGNIU DAIRY (02319.HK) -0.270 (-1.510%) Short selling $57.89M; Ratio 25.322% and YILI (600887.SH) -0.050 (-0.184%) .
CLSA noted that most consumer goods companies believed demand conditions remained under pressure in 3Q26. TINGYI (00322.HK) +0.040 (+0.347%) Short selling $34.96M; Ratio 19.985% and U-PRESID CHINA (00220.HK) +0.025 (+0.360%) Short selling $4.54M; Ratio 23.843% both expected beverage sales performance to remain flat YoY or record a low-single-digit decline, while EASTROC (09980.HK) -0.050 (-0.053%) Short selling $1.73M; Ratio 8.958% expected pressure to intensify QoQ. Most brewers were also expected to see summer peak-season sales volume decline YoY.
However, CLSA pointed out that some consumer subsectors remained resilient. Sugar-free tea continued to record strong growth, and NONGFU SPRING (09633.HK) +0.120 (+0.304%) Short selling $141.00M; Ratio 49.101% , as the dominant market leader, could further consolidate its market position. In the education sector, NEW ORIENTAL-S (09901.HK) -0.460 (-1.061%) Short selling $30.44M; Ratio 19.349% and TAL Education Group (TAL.US) both disclosed that K12 tutoring demand grew about 20% YoY. NEW ORIENTAL-S (09901.HK) -0.460 (-1.061%) Short selling $30.44M; Ratio 19.349% 's overseas business recorded gross order value growth of more than 5% YoY from Jun to Aug this year, with performance improving from the previous quarter. Snack retail franchisees actively opened stores in 2H26, with BUSYMING (01768.HK) -1.000 (-0.284%) Short selling $9.75M; Ratio 8.820% and WANCHEN GROUP (300972.SZ) -1.180 (-0.784%) each opening around 1,000 stores. As for dairy stocks, the broker cited YILI (600887.SH) -0.050 (-0.184%) as expecting its liquid milk market share to accelerate gains during the raw milk upcycle next year. (gc/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-29 16:25.) (A Shares quote is delayed for at least 15 mins.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)