The analyst rating from BofA Securities is influenced by the ongoing downturn in China's consumption, which has lasted nearly four years. The report highlights that historical downturn cycles have averaged four years, and while the broker cannot predict if this pattern will continue, it notes that fundamental factors such as employment, consumer confidence, corporate spending, real estate issues, and a lack of strong consumption stimulus policies are likely to keep pressure on the market in the short term. Despite this, BofA Securities believes that share prices may not be as adversely affected as the fundamentals suggest. Consequently, they have lowered EPS forecasts for 15 Chinese consumer stocks and reduced their average target price, while also initiating coverage on WANCHEN GROUP with a "Buy" rating, indicating a selective optimism in certain stocks that combine growth and yield potential amidst changing market conditions.
