Core Viewpoint - The Hong Kong stock market's new consumption sector is experiencing a cooling period after a previous surge, with significant declines in the stock prices of key players in this sector. Group 1: Market Performance - The "new consumption trio" consisting of Lao Pu Gold, Pop Mart, and Mixue Group saw their stock prices drop significantly, with declines of 6.67%, 6.04%, and 5.85% respectively [2][3]. - Other companies in the sector, such as Bruker and Juzhibio, also faced declines, with Bruker dropping over 7% and Juzhibio nearly 5% [3][4]. - Year-to-date, Lao Pu Gold has increased by over 276%, Pop Mart by over 191%, and Mixue Group by over 158%, with a combined market capitalization exceeding 690 billion HKD [11][12]. Group 2: Market Dynamics - The new consumption sector experienced a strong rally earlier this year, with a reported increase of over 55% from April 7 to June 11, significantly outperforming internet giants during the same period [9]. - The influx of capital from southbound funds into the new consumption sector amounted to 18.325 billion HKD, marking it as a crucial source of incremental funding [9]. Group 3: Market Sentiment and Analysis - Analysts have raised concerns about the overheated nature of the new consumption market, suggesting that stock prices may be inflated beyond reasonable valuations [15][16]. - Factors contributing to the rise of new consumption include changing demographics, particularly the spending power of Generation Z, and a shift towards more frequent, smaller discretionary purchases due to slower income growth [15]. - Some analysts believe that the current market for innovative drugs and new consumption may have reached a peak, indicating potential volatility or adjustments ahead [17][18].