Invest in the Chinese buying spree, suggests J.P. Morgan

Small-scale Chinese consumer plays will remain resilient and outperform the broader market in the coming months or years, the US bank believes.

“Three-inch throats are deeper than the sea.” J.P. Morgan uses this old Chinese adage to indicate the vast potential growth of the country’s food and other domestic consumption sectors.

The bank predicts that Hong Kong-listed Chinese consumer plays will remain resilient and outperform the broader market in the coming months or years, helped by the country’s increasing wages and rapid urbanisation that allow hinterland residents to take part in the shopping frenzy enjoyed by their counterparts in coastal areas.

Companies that play in the staple or low- to mid-end consumer segment are especially attractive bets. “Unlike the tier-one large-cap China consumer names, which are mostly trading at price-to-earnings ratios of 35 to 40...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222