According to the CITIC Securities Research Report, the current Chinese consumer market shows remarkable characteristics of a “K-shaped recovery,” and the rebound in the consumer sector is clearly divided with the moderate recovery in mass consumption. This pattern is mainly driven by supply-side rigidity constraints, the wealth effect of high-net-worth customers, and marginal improvements on the policy side. It is difficult to say that it is a demand-driven trend recovery. Specifically, the aviation industry is constrained by factors such as delays in aircraft introduction and engine maintenance, and effective capacity growth is limited; high-end retail properties and luxury hotels have achieved a leading recovery in passenger flow and revenue in the context of demand pressure due to scarce locations and brand barriers. At the same time, capital market performance and wealth effects brought about by rising gold prices provided demand support for procyclical sectors such as luxury goods, high-end travel, and gaming. At the policy level, industry self-regulatory agreements have effectively consolidated the bottom line of air fares and returns, while the optimization of the outlying islands tax exemption policy and the imminent customs closure of Hainan have created potential room for growth. Key recommendations focus on the transmission of wealth effects and business inflection point opportunities driven by supply-side optimization, including high-end consumption benefiting from the potential transmission of wealth effects in the capital market, such as outbound travel, hotels, gaming, tax exemptions, luxury & high-end beauty care, and high-end real estate properties.

According to the CITIC Securities Research Report, the current Chinese consumer market shows remarkable characteristics of a “K-shaped recovery,” and the rebound in the consumer sector is clearly divided with the moderate recovery in mass consumption. This pattern is mainly driven by supply-side rigidity constraints, the wealth effect of high-net-worth customers, and marginal improvements on the policy side. It is difficult to say that it is a demand-driven trend recovery. Specifically, the aviation industry is constrained by factors such as delays in aircraft introduction and engine maintenance, and effective capacity growth is limited; high-end retail properties and luxury hotels have achieved a leading recovery in passenger flow and revenue in the context of demand pressure due to scarce locations and brand barriers. At the same time, capital market performance and wealth effects brought about by rising gold prices provided demand support for procyclical sectors such as luxury goods, high-end travel, and gaming. At the policy level, industry self-regulatory agreements have effectively consolidated the bottom line of air fares and returns, while the optimization of the outlying islands tax exemption policy and the imminent customs closure of Hainan have created potential room for growth. Key recommendations focus on the transmission of wealth effects and business inflection point opportunities driven by supply-side optimization, including high-end consumption benefiting from the potential transmission of wealth effects in the capital market, such as outbound travel, hotels, gaming, tax exemptions, luxury & high-end beauty care, and high-end real estate properties.