Citi Research Forecast: Citi Research predicts a shift in investor portfolios between 'value' and 'growth' in China's consumption sector, emphasizing a cautious outlook on immediate government consumption stimulation in a low-inflation environment.

Top Stock Picks: In the consumer discretionary sector, Citi's top picks include ANTA SPORTS, POP MART, HAIDILAO, Atour Lifestyle, and MIDEA GROUP, while in consumer staples, they favor CHINA RES BEER, EASTROC BEVERAGE, and MAO GEPING.

Potential Outperformance: If China's consumption recovery surpasses expectations, stocks like LI NING, CTG DUTY-FREE, and HAITIAN FLAV are anticipated to outperform the market.

Short Selling Data: The report includes short selling data for various stocks, indicating market sentiment and potential risks associated with these investments.

Shareholder Actions: MAO GEPING's controlling shareholders and executive directors plan to reduce their holdings due to personal financial needs, which could impact the stock price significantly.

Market Reaction: The announcement has led to a short selling of $32.99 million, with a ratio of 11.890%, indicating potential short-term pressure on the stock.

Earnings Outlook: Despite the potential share reduction, Citi reports a strong earnings outlook for MAO GEPING, projecting a 28% increase in EPS this year.

Broker Rating: Citi has rated MAO GEPING as a Buy with a target price of HKD82, while initiating a 30-day short-term downside observation period for the stock.

Stock Performance: Various companies listed, including H World Group and Pop Mart, showed positive stock movements, with H World-S increasing by 3.96% and Pop Mart by 2.04%.

Short Selling Data: Notable short selling activity was reported for Pop Mart and Wancheng Group, with ratios of 26.286% and 21.972%, respectively, indicating significant market speculation against these stocks.

China's Consumption Downturn: BofA Securities reports that China's consumption downturn has lasted nearly four years, aligning with historical trends, but the future remains uncertain due to ongoing pressures from employment, consumer confidence, and lack of stimulus policies.

Impact on Stock Prices: Despite the consumption challenges, BofA Securities believes that share prices may not be as negatively impacted, although they have lowered EPS forecasts for 15 Chinese consumer stocks and reduced their average target price.

Investment Recommendations: BofA Securities has initiated coverage on WANCHEN GROUP and identified top picks for 2026 that combine growth and yield, including HWORLD-S, POP MART, and YUM CHINA, among others.

Sector Ratings: The latest ratings and target prices for the consumer sector have been updated, with a focus on stocks that exhibit growth potential and high dividend yields amidst changing market conditions.

Market Performance: Hong Kong stocks showed slight movements on settlement date, with the HSI closing up 17 points at 25,945, while the HSCEI and HSTECH experienced minor fluctuations.

Top Gainers and Losers: ALI HEALTH was the biggest loser, dropping 5.6%, while POP MART emerged as the largest gainer, increasing by 6.8%.

Tech Stocks Update: Major tech companies like BABA-W and TENCENT saw declines of 2.7% and 1.3%, respectively, while XIAOMI-W gained 2.5% following a notable personnel change.

Sector Highlights: Chip stocks generally fell, while handset-related stocks like COWELL and Q TECH saw significant gains, indicating mixed performance across different sectors.