Zhi Tong Cai Jing·2025-05-30 00:47Core Viewpoint - The report from CITIC Securities indicates a clear direction for Chinese policies aimed at boosting domestic demand, with expectations of improved consumer preferences for investment in the context of increased market volatility and uncertainty [1][4] Group 1: Consumer Trends - Current consumer trends are characterized by three main lines: rational consumption, quality upgrades alongside affordable alternatives; spending on emotional satisfaction and quality of life; and new consumption directions driven by technological advancements [1] - The traditional consumption sector is showing signs of recovery, particularly in essential goods, with Q2 2025 expected to be a bottoming window for many consumer industries [1][2] Group 2: Consumption Data and Performance - In the first half of 2025, consumer demand and price pressures are easing, with a notable rise in "quality-price ratio" consumption and strong demand for leisure and entertainment [2] - The recovery in consumer data, combined with strong performance in certain sectors, has led to increased marginal interest from investors in the consumer industry, although many sub-sectors remain at reasonable valuation levels [2] Group 3: Structural Changes and New Consumption - Four slow-moving variables are shaping the macroeconomic landscape in China: aging population, smaller households, AI-driven production changes, and complex external environments, leading to structural growth opportunities for new consumption companies [3] - New consumption characteristics are emerging from companies that meet consumer demands for emotion, health, and value, supported by innovations in AI and biotechnology [3] Group 4: Policy Impact and Short-term Outlook - The short-term recovery of consumer-related industry valuations is heavily reliant on overall expectations for the domestic macroeconomic environment, with 2025 potentially being a turning point [4] - Strengthening internal circulation and expanding domestic consumption markets are becoming necessary choices, with policy effects contributing to the ongoing recovery in both goods and service consumption [4]