HK Stock Market Move | Retail stocks strengthen in early trading, first-quarter consumption market continues to heat up, institutions say stable domestic demand policies are expected to further strengthen.

Retail stocks strengthened in the morning session, with as of press time, GUOQUAN(02517) rising 17.67% to 2.73 Hong Kong dollars; WL DELICIOUS(09985) rising 9.19% to 15.44 Hong Kong dollars; LAOPU GOLD(06181) rising 7.42% to 688 Hong Kong dollars; MIXUE GROUP(02097) rising 7.34% to 377.2 Hong Kong dollars; POP MART(09992) rising 5.83% to 134.3 Hong Kong dollars; MAO GEPING(01318) rising 4.34% to 93.85 Hong Kong dollars. On the news front, high frequency data released by the National Information Center showed that in the first quarter of this year, the offline consumption intensity index increased by 14.2% year-on-year, an increase of 9.1 percentage points from the previous quarter. Among them, in March, the year-on-year growth was 20.0%, which was 4.7 percentage points higher than the previous two months, and the growth rate continued to rise. Zhongjin pointed out that external risks exceeding expectations will prompt domestic counter-cyclical policies to increase their efforts. Moreover, "vigorously stimulating consumption, improving investment efficiency, and expanding domestic demand comprehensively" were placed as the top priorities for the 2025 work tasks in the Central Economic Work Conference at the end of last year and the government work report this year. This means that China's policy framework pays more attention to shifting from the past supply-driven emphasis to demand, amidst uncertain external demand background, stable internal demand policies are expected to further strengthen, which will be crucial in stabilizing the market's own risk premium. Guoyin International believes that as Chinese consumer goods companies face significant challenges in exporting in the short term, the government's continued efforts to expand domestic demand have a higher degree of certainty. The bank is more bullish in the short term on the stock performance of consumer goods companies driven by domestic demand. Some high-quality growth-oriented consumer goods companies (such as POP MART, GIANT BIOGENE, and Luckin Coffee) have clear long-term growth logic and strong earnings visibility, but in the short term, their stock prices have declined significantly due to market sentiment. The bank predicts that the stock prices of these companies may rebound significantly after short-term fluctuations.