Core Viewpoint - The National Medical Products Administration (NMPA) has released opinions aimed at deepening cosmetic regulation reform and promoting high-quality development in the industry, following public consultation [1][2] Group 1: Market Overview - The total transaction value of China's cosmetics market is projected to reach 1,073.822 billion yuan in 2024, reflecting a year-on-year growth of 2.8% [1] - Domestic brands continue to expand their market share, which has reached 55.2% [1] Group 2: Regulatory Framework - By 2030, the regulatory legal system for cosmetics in China is expected to be more complete, with a robust standard system, strong technical support, enhanced risk prevention capabilities, and significantly improved quality and safety levels [1] - By 2035, the quality and safety regulatory system for cosmetics is anticipated to reach an internationally advanced level, adapting better to the innovative and high-quality development needs of the industry [1] Group 3: Reform Measures - The opinions outline 24 reform suggestions and 48 specific reform measures, focusing on enhancing innovation support, improving registration and filing management, and strengthening regulatory mechanisms [2] - New measures include streamlining the registration process for new efficacy cosmetics, encouraging international product launches in China without the need for overseas sales proof, and supporting product development for the elderly demographic [2] - The core approach emphasizes encouraging innovation, enhancing quality, and ensuring safety, aiming to create a transparent and efficient business environment for sustainable industry growth [2]

Investment Rating - The report assigns an "Outperform" rating to multiple companies in the discretionary sector, including Nike, Midea Group, JD Group, Haier Smart Home, Gree Electric, Anta Sports, and others [1]. Core Insights - The report highlights a recovery in mid-to-high-end consumption and increased focus on high-dividend A/H stocks, which has driven attention to sub-sectors within discretionary consumption [1][4]. - Various sub-sectors have shown different performance trends, with overseas sportswear leading the gains, followed by luxury goods and domestic sportswear [4][12]. Performance Review by Sub-Sector - **Weekly Performance**: Overseas sportswear increased by 6.8%, luxury goods by 5.2%, and domestic sportswear by 3.8%. In contrast, the pet sector saw a decline of 5.8% [4][12]. - **Monthly Performance**: The gambling sector led with an 8.4% increase, while domestic cosmetics experienced a significant decline of 14.3% [12]. - **Year-to-Date Performance**: The gold and jewelry sector outperformed with a 137.2% increase, while overseas sportswear saw a decline of 21.5% [12]. Sub-Sector Analysis - **Overseas Sportswear**: Notable gains driven by strong Q3 FY25 earnings, particularly in EMEA and Asia-Pacific regions, alleviating market concerns [6][15]. - **Luxury Goods**: Companies like Samsonite and Burberry reported better-than-expected earnings, boosting market confidence [6][15]. - **Domestic Sportswear**: OEM companies confirmed growth expectations for 2026 orders, contributing to positive stock performance [6][15]. - **Gold and Jewelry**: The sector benefited from rising international gold prices and favorable tax regulations in Hong Kong and Macau [8][15]. - **Pet Sector**: Experienced a decline post Double Eleven sales, with increased competition among brands [15]. Valuation Analysis - The report indicates that most sub-sectors are trading below their historical five-year average P/E ratios, suggesting potential undervaluation [9][16]. - **Projected P/E Ratios for 2025**: - Overseas sportswear: 29.1x (55% of historical average) - Domestic sportswear: 14.8x (78% of historical average) - Gold and jewelry: 23.8x (45% of historical average) - Luxury goods: 27.0x (49% of historical average) [9][16].

Core Viewpoint - The National Medical Products Administration (NMPA) has released an opinion aimed at deepening cosmetic regulation reform to promote high-quality development in the industry, outlining 24 reform measures across five key areas [1]. Group 1: Reform Measures - The opinion emphasizes encouraging innovation within the cosmetic industry [1]. - It proposes optimizing registration and filing management to streamline processes [1]. - Strengthening risk prevention and control across the entire supply chain is highlighted as a critical measure [1]. - The opinion aims to enhance intelligent regulatory capabilities to improve oversight [1]. - Promoting alignment of regulations with international standards is also a key focus [1]. Group 2: Future Goals - By 2030, the regulatory legal framework for cosmetics is expected to be more complete, with a more robust standard system and stronger technical support [1]. - The industry is anticipated to exhibit increased innovation vitality and enhanced risk prevention capabilities by 2030 [1]. - By 2035, the cosmetic quality and safety regulatory system is projected to reach international advanced levels, with improved innovation and global competitiveness [1].

Core Viewpoint - The National Medical Products Administration of China has issued a document aimed at transforming the country from a "cosmetics manufacturing giant" to a "cosmetics powerhouse," proposing 24 reform opinions and 48 specific measures to enhance the quality and safety of the cosmetics industry [1][2]. Group 1: Regulatory Reforms - The document introduces a dedicated review pathway for "new efficacy cosmetics," allowing for "immediate reporting and review," which significantly reduces the time required for technical reviews and registration [2]. - It encourages the launch of new cosmetics in China, aiming to make the country a global hub for new product launches, thus eliminating the need for proof of prior sales in the production country [2]. - The document promotes the development of cosmetics tailored for the aging population, recognizing the "silver economy" as a new market opportunity [3]. Group 2: Industry Efficiency - A series of measures are introduced to reduce burdens on companies, such as allowing similar products to share technical data and streamlining the review process for special cosmetics [3][4]. - The document emphasizes the reduction of animal testing requirements, prioritizing the development of alternative testing methods [3]. - It mandates the implementation of electronic labels for cosmetics, enhancing consumer access to product information and improving operational efficiency for companies [3]. Group 3: Customization and Innovation - The document encourages personalized services in cosmetics, allowing for on-site adjustments and repackaging based on consumer needs, aligning with the trend of personalized consumption [4]. - Overall, the 24 reform measures aim to liberate the industry from constraints, fostering innovation and development within the cosmetics sector [5].

Core Viewpoint - The National Medical Products Administration (NMPA) has released a set of reform measures aimed at enhancing the regulation of cosmetics in China, focusing on promoting high-quality development in the industry [1] Group 1: Reform Measures - The reforms consist of 24 measures across five key areas: encouraging innovation, optimizing registration and filing management, strengthening risk prevention across the entire supply chain, enhancing smart regulatory capabilities, and aligning regulations with international standards [1] - The goal is to solidify the quality and safety baseline of cosmetics, cultivate new productive forces, and drive high-quality development in the cosmetics industry [1] Group 2: Future Goals - By 2030, the regulatory legal framework for cosmetics is expected to be more complete, with a more robust standard system, stronger technical support, increased innovation vitality, enhanced risk prevention capabilities, and significantly improved quality and safety levels [1] - By 2035, the cosmetics quality and safety regulatory system aims to reach international advanced levels, with the industry exhibiting greater innovation and global competitiveness, and achieving modernization in regulation [1]

Core Viewpoint - The document emphasizes the need to accelerate China's transition from a "cosmetics manufacturing giant" to a "cosmetics powerhouse," enhancing public satisfaction, happiness, and safety in the cosmetics sector [2]. Group 1: Support for Industry Innovation - Establish a "report and review" mechanism to facilitate the registration of new efficacy cosmetics [2]. - Encourage the launch of international new products in China without requiring proof of prior sales in the production country [3]. - Promote the development of cosmetics suitable for the elderly and support the registration of related products [4]. - Implement electronic labeling to digitize label management [5]. - Allow on-site simple mixing and repackaging services for registered ordinary cosmetics [5]. - Encourage local governments to introduce supportive policies to cultivate internationally competitive domestic brands [6]. Group 2: Optimize Registration and Filing Management - Improve new raw material management and establish a pre-consultation channel for full-process services [7]. - Allow similar formula products under the same brand to share safety technical data [8]. - Establish a joint review mechanism between national and provincial agencies to shorten review times for high and low-risk changes [9]. - Enhance safety assessment guidelines and promote advanced evaluation technologies [10]. - Allow companies to choose their efficacy evaluation methods and share efficacy evaluation data among similar products [10]. Group 3: Improve Production and Operation Supervision - Implement tiered and categorized supervision based on the quality system and risk level of enterprises [11]. - Explore optimization of quality management requirements for external warehouses and intelligent production [12]. - Strengthen e-commerce platform responsibilities and enhance regulatory collaboration [11]. - Optimize adverse reaction monitoring platforms and promote data sharing [12]. - Enhance the verification of registration and filing data authenticity [13]. Group 4: Strengthen Technical Support - Optimize the structure of review and inspection teams and enhance systematic training [14]. - Accelerate the establishment of mandatory national standards to fill gaps in raw material safety control and efficacy evaluation [14]. - Focus on scientific research in key areas such as safety assessment and innovative raw materials [15]. - Promote full-process digitization and optimize regulatory applications using artificial intelligence [15]. Group 5: Promote International Integration - Participate in the formulation of international regulatory rules to support the global expansion of domestic cosmetics [16]. - Accelerate the conversion of international standards and actively participate in international standard-setting [16]. - Gradually promote the exemption of animal testing and accelerate the development of alternative testing methods [16]. - Establish a dynamic updating mechanism for approved raw material standards to include internationally assessed safe raw materials [16].

Core Viewpoint - The National Medical Products Administration (NMPA) has released opinions aimed at deepening the reform of cosmetics regulation to promote high-quality development in the industry, with a vision for significant improvements by 2030 and 2035 [1] Group 1: Regulatory Framework - By 2030, the legal system for cosmetics regulation will be more complete, with a more robust standard system and stronger technical support [1] - The risk prevention and control capabilities will be comprehensively strengthened, leading to a significant improvement in quality and safety levels [1] Group 2: Industry Innovation - By 2035, the quality and safety regulatory system for cosmetics is expected to reach an internationally advanced level, adapting better to the inherent requirements of industry innovation and high-quality development [1] - The industry will possess stronger innovation and creativity capabilities, enhancing its global competitiveness [1] Group 3: Modernization of Regulation - The regulatory system, mechanisms, and methods will be modernized to better align with the needs of the evolving cosmetics industry [1]

Core Insights - Guangdong Songjinzi Jewelry Technology Co., Ltd. has recently been established with a registered capital of 10 million RMB, indicating a significant entry into the jewelry market [1] Company Overview - The company is legally represented by Li Boqi and is engaged in a wide range of business activities including wholesale and retail of jewelry, domestic trade agency, and sales of various materials and products [1] - The extensive business scope includes services in health and wellness, industrial design, and various retail sectors such as cosmetics, electronics, and household appliances [1] Industry Implications - The establishment of Guangdong Songjinzi Jewelry Technology Co., Ltd. reflects ongoing growth and diversification within the jewelry and related sectors in China, potentially indicating increased competition and innovation in the market [1] - The company's diverse operational areas suggest a strategic approach to leverage multiple revenue streams, which may enhance its resilience in fluctuating market conditions [1]

Investment Rating - The report suggests a positive investment outlook for the cosmetics industry, highlighting strong growth potential for specific companies [29]. Core Insights - The 2025 Double 11 event showed steady double-digit growth, with total GMV reaching RMB 1.695 trillion, a 14% increase from 2024. Instant retail demonstrated significant growth, with comprehensive e-commerce and community group buying also contributing positively [29][4]. - The beauty category maintained robust growth across multiple platforms, with skincare and makeup categories achieving growth rates between 5-15%. Domestic brands like PROYA and Winona performed particularly well, with PROYA maintaining the top position in Tmall's beauty rankings [29][14][17]. - The report emphasizes the trend of full-chain integration and one-stop services across platforms, with Tmall achieving its best growth in four years, driven by high-value user contributions from 88VIP [29][8]. Summary by Sections Double 11 Performance - The 2025 Double 11 event recorded a total GMV of RMB 1.695 trillion, marking a 14% increase from the previous year. Instant retail grew significantly, with GMV for comprehensive e-commerce at RMB 1.6191 trillion, and community group buying at RMB 90 billion [4][29]. - Tmall's performance was highlighted as the best in four years, with significant contributions from 88VIP and other platforms like JD.com and Douyin also showing strong growth [11][12]. Brand Performance - Companies such as Guangzhou Ruoyuchen Technology Co., Ltd. and Shanghai Chicmax Cosmetic Co., Ltd. reported impressive growth during Double 11, with Zhenjia's GMV increasing by 80% year-on-year and Feicui's GMV growing 35 times [25][29]. - The report notes that domestic brands excelled in the beauty category, with PROYA and other brands maintaining strong positions in the market [22][29]. Investment Recommendations - The report recommends focusing on high-growth brands such as Ruoyuchen, Chicmax, and Mao Geping, as well as companies with stable fundamentals like Dentium and Shanghai Jahwa United. It also identifies companies expected to bottom out, such as PROYA and Lafang [29][38].

Core Viewpoint - Concerns over deteriorating Sino-Japanese relations have led to a sell-off in tourism-related stocks in Japan, with some stocks dropping over 10% due to fears of decreased demand from Chinese tourists [1] Group 1: Stock Performance - Stocks of major department stores such as Mitsukoshi Isetan fell by 10.64% and Takashimaya by 6.29% [1] - Shiseido, which heavily relies on Chinese consumer spending, saw its stock drop by over 11% [1] Group 2: Investor Sentiment - Investors are reacting to expectations that the Chinese government's travel warnings will negatively impact the performance of related companies, prompting a rapid sell-off of stocks [1] Group 3: Economic Impact - Nomura Research Institute predicts that the Chinese government's travel warnings could lead to a reduction in Japan's tourism revenue by 22.124 trillion yen, which may result in a 0.36% decrease in Japan's actual GDP [1]