Global Markets Strategy 26 January 2026 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. China Equity Strategy Shenzhen Opportunity Forum takeaways On 20-21 January, the 2026 JPM China Opportunity Forum brought together 100+ companies and 210+ investors. We s ...

U.S. stock futures are presenting a mixed picture this Tuesday, January 27, 2026, as investors navigate a busy week dominated by corporate earnings reports, a crucial Federal Reserve policy meeting, and fresh geopolitical developments. While technology-focused futures show upward momentum, broader market indicators suggest a more cautious approach in premarket trading.Premarket Activity and Index FuturesAs of early Tuesday, premarket trading indicates a divergence among the major U.S. indexes. Nasdaq 100 fu ...

This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Peregrine Hospitality has appointed restaurant industry executive Heather Stege as chief operating officer. In her new role, Stege will partner with executive leadership across Peregrine’s portfolio of resort, luxury, boutique and select-service hotels to drive portfolio performance and operational excellence, according to a release obtained by Hotel Dive. Stege join ...

Core Insights - The competitive labor market is challenging for jobseekers as AI technology is eliminating entry-level roles, with only 50,000 jobs added in December [1] Group 1: Hiring Philosophy - Leila Hormozi, founder of Acquisition.com, emphasizes hiring good people over those with technical skills, inspired by the Ritz-Carlton's hiring philosophy [2][4] - The Ritz-Carlton cofounder, Horst Schulze, highlighted the importance of selecting and orienting the right people to maintain high standards [3] Group 2: Skills in Demand - Hormozi argues that social and emotional skills are undervalued compared to technical skills, which are increasingly mastered by AI [5] - Research from LinkedIn indicates that soft skills like adaptability and analytical thinking are becoming more important as AI takes over technical roles [5] - A Harvard study suggests that individuals with strong foundational skills tend to learn faster and advance more effectively over time [5] Group 3: Leadership Perspectives - Other business leaders, including JPMorgan Chase CEO Jamie Dimon, advocate for the development of critical thinking and emotional intelligence as essential skills for future job security [6]

Group 1 - The core theme of the New Year's celebrations in Tianjin includes various engaging activities such as music parties, themed events, and extended business hours to enhance customer experience [3][4][5] - Peace Impression City experienced a 35% year-on-year increase in overall foot traffic in 2025, attributed to its focus on integrating cultural, commercial, and tourism elements [3] - The "Time Interference Conference" at Chengyun "Yuanli Field" attracted around 40,000 visitors on New Year's Eve, with a projected 50% increase in daily foot traffic during the New Year holiday compared to regular weekends [4] Group 2 - Various hotels in Tianjin hosted unique New Year's events, such as the "Elegant Gathering at Yanting: National Trend New Year's Eve" banquet at Tianjin Yanyuan International Hotel, which included games and entertainment [5][6] - The Tianjin Lishund Hotel's "Museum Wonderful Night" event allowed guests to explore the hotel's century-old history through themed dining and interactive games [6]

Core Viewpoint - The Generation Essentials Group (TGE), a subsidiary of AMTD Digital Inc., has successfully executed a sale and purchase agreement for the acquisition of the Hilton Garden Inn New York City Tribeca, with plans to close the acquisition within the next two months [1][2]. Group 1: Acquisition Details - The Hilton Garden Inn New York City Tribeca is located at 39 6th Ave, New York, NY 10013, featuring 151 rooms and suites, a full fitness center, and 5,000 square feet of retail space [2]. - TGE has completed the irrevocable deposit for the acquisition, indicating a commitment to finalize the deal soon [2]. Group 2: Company Background - AMTD Group is a conglomerate with a diverse business portfolio that includes media and entertainment, education and training, and hospitality sectors [3]. - AMTD IDEA Group serves as a diversified institution and digital solutions provider, connecting companies and investors with global markets [4]. - AMTD Digital Inc. operates a comprehensive digital solutions platform, focusing on digital media, content, marketing services, and hospitality [5]. - The Generation Essentials Group focuses on global strategies in multimedia, entertainment, and hospitality, and is also a special purpose acquisition company (SPAC) sponsor manager [6].

Asian conglomerate and Hashoo Group division PC Hospitality has entered a strategic agreement to deploy Shiji cloud-based software solutions throughout its portfolio. The new partnership will see PC Hospitality implement Shiji Daylight PMS, Horizon Distribution, and Infrasys POS systems as part of an ongoing effort to centralise data management and improve distribution processes. These platforms are intended to standardise operations and support the company’s plans for regional expansion. Shiji’s techn ...

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Consumer Sector - **Event**: Citi's 2025 China Conference - **Participants**: 44 China consumer companies were hosted, leading to the identification of five investment themes in the consumer sector [1][9] Investment Themes 1. **Shift Towards Experience Consumption**: - Consumers are increasingly valuing emotional experiences over physical goods, seeking happiness and self-expression through services [2] - Companies like Pop Mart provide affordable entertainment options that resonate with young consumers [2] 2. **Focus on Well-being**: - Younger generations are prioritizing spending on wellness, including health, fitness, and mindfulness [3] - Growth opportunities are seen in sectors like sportswear (Anta), health supplements (H&H), and beauty care (Giant Bio) [3] 3. **Rising Silver Economy**: - The aging population is driving demand for leisure and cultural experiences, benefiting industries like tourism (H World, Atour) and health supplements [4] 4. **Emerging New Channels**: - New offline channels such as membership stores and snack specialty chains are gaining traction, helping to offset declines in traditional distribution [5] 5. **Multi-brand Strategy**: - Companies are expanding their brand portfolios to meet diverse consumer demands, with a focus on easing channel inventory pressure [6] Company-Specific Insights Pop Mart (9992.HK) - **Sustainability of IP Operation**: Pop Mart is seen as a growth play due to its strong IP incubation capabilities. Concerns about growth sustainability are being addressed through new product launches [10] - **LABUBU Durability**: The company plans to enhance its LABUBU IP with new products and has postponed the launch of LABUBU 4.0 to 2026 [11] - **Overseas Expansion**: Plans to operate over 60 stores in the US by the end of 2025, with expansions into Canada and Mexico [13] Laopu Gold (6181.HK) - **Sales Growth Expectations**: Management expects high revenue growth in 2H25E driven by price adjustments and new store sales [16] - **Price Adjustment Strategy**: A recent price increase of over 25% aims to maintain a gross profit margin (GPM) of at least 40% [17] - **Store Expansion Plans**: Focus on expanding floor areas in existing malls rather than entering new ones [22] Haidilao International Holding Ltd (6862.HK) - **Recovery in Table-Turn**: Management anticipates positive momentum in table-turn rates due to seasonal factors and a low comp base [30] - **Operational Improvements**: Plans to terminate loss-making pilot programs to save on operational expenses [32] China Resources Beer (0291.HK) - **Sales Performance**: The company reported low single-digit year-over-year sales growth, outperforming peers [34] - **Margin Outlook**: Expected GPM improvement in 2H25E, with a target dividend payout ratio increase to ~60% in 2025E [36] Midea Group (0300.HK) - **Sales Growth Target**: Management maintains a target of ~10% sales growth for 2025, with a focus on air-conditioning sales recovery [40] - **Overseas Business Expansion**: Plans to increase overseas production to ~30% and grow sales in developed markets through M&A [41] Li Ning (2331.HK) - **Sales Guidance**: Maintained guidance for 2025 with expectations of flat sales and high single-digit net profit margin growth [48] Nongfu Spring (9633.HK) - **Sales Guidance**: Management reiterated a mid-teen percentage growth target for 2025, with limited impact from price wars in the beverage sector [51] Cosmetics Sector - **Mixed Performance**: Domestic brands like Mao Geping and Chicmax showed strong growth, while others lagged behind [56] - **Growth Strategies**: Companies are focusing on online sales growth and improving operational efficiency to enhance margins [57][59] Additional Insights - **Consumer Trends**: There is a notable shift towards experiential consumption and wellness, indicating a changing landscape in consumer preferences [2][3] - **Operational Strategies**: Companies are adopting multi-brand strategies and optimizing supply chains to enhance profitability and meet diverse consumer demands [6][14] This summary encapsulates the key insights and trends discussed during the conference, highlighting the evolving dynamics within the China consumer sector and specific company strategies.

Market Overview - The A-share market showed overall strength, with the ChiNext Index rising over 3% at one point. The Shanghai Composite Index closed down 0.15% at 3864.18 points, while the Shenzhen Component Index rose 1.02% to 12907.83 points, and the ChiNext Index increased by 2.14% to 3044.69 points. The total trading volume in the Shanghai and Shenzhen markets reached 1.7973 trillion yuan [1] Consumer Sector - The consumer sector, led by retail stocks, saw significant late-session gains. Notable stocks such as Hai Xin Food and Kai Chun Co. reached their daily limit up. The Ministry of Industry and Information Technology and other departments issued a plan to enhance the adaptability of supply and demand in consumer goods, aiming for a noticeable optimization of the supply structure by 2027 and a high-quality development pattern by 2030 [2] AI Industry - CPO concept stocks and AI-related stocks remained active, with several companies like Chang Guang Hua Xin and Sai Wei Electronics hitting their daily limit up. Alibaba's CEO indicated a sustained demand for AI resources, predicting a supply-demand imbalance for the next three years. Alibaba's cloud revenue grew by 34% year-on-year, with AI-related product revenue increasing for nine consecutive quarters [4][5] Pharmaceutical Sector - The pharmaceutical sector experienced strong gains, particularly in innovative drugs and vaccine concepts. Companies like Yue Wannianqing and Huaren Health reached their daily limit up. The small nucleic acid drug field is gaining attention due to recent global advancements, with expectations for significant growth driven by technological breakthroughs and commercialization [7]

Core Insights - Sonder (SOND) shares experienced a significant increase, more than doubling on November 20, driven by speculative momentum and retail enthusiasm rather than fundamental improvements [1][5][6] - The stock is currently trading below $1, categorizing it as a penny stock, which is known for high volatility and limited institutional support [5][6] - The company has filed for Chapter 7 bankruptcy and has ceased operations, indicating severe financial distress [3][4] Company Financial Status - Sonder has liabilities that far exceed its assets, with no clear path to recovery, making it unlikely for equity holders to see any residual value [3][4] - The company is involved in a legal battle with Marriott International, which adds to its financial challenges [4] Market Behavior - The recent surge in SOND shares resembles a meme stock rally characterized by massive trading volume, lack of news, and social media hype [5][6] - Such rallies are typically short-lived and can lead to sharp reversals, posing risks for latecomers [6] Analyst Coverage - Wall Street analysts have ceased coverage of Sonder shares, resulting in no updated earnings estimates or price targets, leaving retail investors without guidance [7][8]