JPM: China's Aug Retail Growth Misses Expectations; Too Early to Call Broad-based Sector Recovery
AASTOCKS News·- JPM reported that China's August retail sales grew 0.4% year-on-year, missing expectations and signaling weak underlying demand. - The bank noted that while subsidies may boost certain categories through year-end, a broad-based consumer sector recovery is still premature. - JPM considers market expectations for a 21% sector earnings rebound in 2H26 overly optimistic and anticipates continued share price pressure.Citi Says CN Consumer Goods Sector Posts Mixed 1H26 Results, Adjusts Sector Preferences
AASTOCKS News·- Citi reported that 27% of companies in its China consumer goods coverage exceeded 1H26 expectations, 38% met them, and 35% fell short. - Despite unchanged structural consumption trends, the broker adjusted its sector preference rankings and identified top picks for 2H26. - MENGNIU DAIRY and NONGFU SPRING lead staples, while ANTA SPORTS, MIDEA GROUP, and Atour Lifestyle are top discretionary picks.