J.P. Morgan: Mainland home appliance retail data for September was weak, reflecting price pressure and weakening end demand.

J.P. Morgan released a research report stating that AVC data shows China's home appliance retail data for September was weak, with retail sales falling 13% year-on-year, further deteriorating from the 9% declines in both July and August, despite a significantly lower comparison base. In terms of market share, HAIER SMARTHOME (06690) saw its total market share rise to 26.6%. The bank noted that average selling prices fell 11% year-on-year, while sales volume declined 2% year-on-year, reflecting price pressure and weakening end demand. The data reduces the bank's confidence in short-term domestic demand, especially as third-quarter results are expected to face stricter scrutiny. The bank will not change its constructive view on the industry based on a single month's data, but the burden of proof has increased, and management commentary on third-quarter results and October sales will be key follow-up data points.