Mainland Chinese food and beverage (F&B) brands are struggling to win over Hong Kong investors, as persistent market concerns over the country’s weak consumption weigh on valuations. While more than 10 consumer and F&B chains successfully listed in 2025, this year presents a starkly different landscape. Chinese fast-food brand LXJ International’s third listing application expired last week after failing to secure a hearing within six months, Hong Kong Exchanges and Clearing (HKEX) filings showed. Similar lapses recently affected Yuen Kee Food Group, the largest dumpling and wonton company in China, Qdama International, the leading seller of meat and fresh produce on the mainland, and packaged-food manufacturer Grandpa’s Farm International. For listed companies, share prices faced heavy pressure. During the second quarter of 2026, Chinese consumer stocks tracked by Goldman Sachs fell an average of 17 per cent, underperforming both the Hang Seng Index and Shanghai’s CSI 300, according to a research note from the bank on Tuesday. Notably, Mixue Group, China’s largest tea chain, grew 2025 revenue and profit by over 30 per cent. However, rising raw material costs, intense competition capping price hikes, and weakening consumption drove its stock down 48 per cent this year. Similarly, Xiao Noodles, a Chinese fast-casual brand listed last December, has plunged nearly 50 per cent from its listing price. Goldman Sachs reported that the market turned increasingly cautious following weaker-than-expected retail sales, labour market pressures – partly driven by artificial intelligence adoption impacting entry-level jobs – and adverse weather. To stimulate consumption, the State Council approved a five-year plan on Monday targeting annual retail sales of around 60 trillion yuan (US$8.85 trillion) by 2030, implying a growth slowdown to about 3.66 per cent from the roughly 5 per cent recorded during the 2021 to 2025 period. In June, China’s total retail sales of consumer goods reached 4.27 trillion yuan, a year-on-year increase of 1 per cent. That beat market expectations of a 0.1 per cent decline and marked the fastest growth rate in three months, reversing a 0.6 per cent contraction in May, according to data from the National Bureau of Statistics. Excluding automobiles, retail sales in June totalled 3.89 trillion yuan, up 3 per cent from a year earlier. In the first half of the year, however, goods consumption edged up only 1.1 per cent while spending on services surged 5.3 per cent, suggesting a clear consumer preference for tourism, dining out, cultural events and other experiences over physical goods. Weak demand heightened concerns over pricing sustainability, prompting wider discounts – especially during the 618 shopping festival – and increased promotional spending, though restaurant and coffee brands maintained relatively disciplined pricing. Additionally, Chinese regulators have tightened scrutiny on red-chip listings – those registered overseas but hold Chinese assets through equity ownership – in Hong Kong, increasing IPO timeline uncertainties. Qdama was earlier required by the China Securities Regulatory Commission to submit supplementary compliance details regarding its red-chip structure.