Chinese consumers tripled their excess savings to 6 trillion yuan (US$874 billion) during the Covid-19 pandemic. Can “revenge spending” give China’s onshore stock market a helping hand?
Since China began dismantling its zero-Covid policy in November, baijiu distiller Luzhou Laojiao and furniture maker Oppein Home Group have outperformed all save telecoms stocks, according to Bloomberg data. Stocks in the consumer-staple and consumer-discretionary sector rose by at least 23 per cent, while the CSI 300 Index gained 16 per cent.
Luzhou Laojiao has risen 65 per cent since November while industry peer Wuliangye Yibin gained 60 per cent. Oppein Home and robotic floor cleaner maker Ecovacs Robotics have appreciated more than 50 per cent.
Read More at https://www.scmp.com/business/china-business/article/3210862/china-market-wavers-can-us874-billion-excess-savings-give-consumer-stocks-helping-hand