All Three Major Stock Indices Decline, Consumer Sector Rises Against Trend
On January 2, the overall market showed a lackluster performance, with all three major stock indices falling sharply in early trading. By the midday close, the Shanghai Composite Index was at 3316.50 points, down 1.05%; the Shenzhen Component Index at 10283.67 points, down 1.26%; and the ChiNext Index at 2103.17 points, down 1.79%. Despite the widespread decline in indices, consumer-related sectors bucked the trend with strong performance, notably in the food and beverage, retail, and apparel and home fabrics sectors.
Consumer Sector Shines Bright
The consumer sector emerged as a market highlight, particularly with the robust rise of the food and beverage sector. Among individual stocks, Black Sesame, Hope You, and Bestore saw multiple stocks hit daily limits. Analysts point out that the approaching peak of the New Year's goods season has fueled interest in the food and beverage sector, with live streaming sales and gift box consumption further propelling industry growth. Additionally, the apparel and home textiles sector was also active, with stocks like Rongmei Co., Ruyi Group, and Gelisi reaching their daily limits.
The retail sector also saw significant gains, with standout performances from Dubi Group and Wenfeng Co. Dongxing Securities stated that looking ahead to 2025, consumer policy is expected to further boost market vitality, especially focusing on new concepts and sentiment-driven consumption tracks.
Military and Semiconductor Sectors Lead Declines
In contrast to the robust performance of the consumer sector, the military equipment, semiconductor, and major financial sectors led the declines in the morning session. In the military equipment concept sector, Guangqi Technology briefly hit the lower limit, while brokerage and insurance sectors were sluggish, with Guolian Securities leading declines. Additionally, the semiconductor sector was weak and volatile, with Changchuan Technology dropping over 8%.
Macroeconomic Signals Boost Consumer Confidence
On the macroeconomic front, several positive signals at the beginning of the year have bolstered confidence in the consumer market. Data shows that for 2024, the total national railway transport revenue increased by 2.7% year-on-year, hitting a historic high; the number of entry and exit travelers during the New Year holiday rose by 13.7% year-on-year, indicating a rebound in consumer vitality. Additionally, Eli Lilly announced the launch of its diabetes and weight loss drug Tirzepatide in China, further reflecting growth potential in the consumer healthcare sector.
Institutional Viewpoints: Focus on Consumer and Technology Sectors
Multiple institutions maintain a cautiously optimistic outlook on the future market trends. Founder Securities pointed out that the paper and packaging industry is likely to benefit from the recovery of consumer demand, with paper prices expected to stabilize. China International Capital Corporation stated that 2025 will be a critical year for intelligent driving to transition from quantity to quality changes, recommending attention to potential opportunities in the fields of intelligent driving and robotics.
Overall, the strong performance of the consumer sector provided highlights for the overall weak market, but attention must still be paid to macro policy changes and the impact of external risk factors. Investors may focus on promising consumer and emerging technology sectors to cope with market fluctuations.
