CITIC Construction Investment pointed out that along with the wealth effect brought about by the rise in the stock market, domestic high-end consumption has gradually recovered since the third quarter of 2025, which has been verified in terms of the performance of international luxury brands in Greater China and the recovery of high-end shopping malls. I am optimistic about the investment opportunities for high-end consumption recovery in 2026. The timing and intensity of the recovery of the different categories of high-end consumption is mainly determined by the four dimensions of VIC customer base share, consumption order/immediate demand level after increasing wealth, supply elasticity, and consumer trends. CITIC Construction Investment believes that the categories with strong initial demand in the middle and early stages of high-end consumption will be the first to recover, and the categories with a large share of the VIC customer base in the later stages are highly elastic, and the supply pattern lasts the longest.

CITIC Construction Investment pointed out that along with the wealth effect brought about by the rise in the stock market, domestic high-end consumption has gradually recovered since the third quarter of 2025, which has been verified in terms of the performance of international luxury brands in Greater China and the recovery of high-end shopping malls. I am optimistic about the investment opportunities for high-end consumption recovery in 2026. The timing and intensity of the recovery of the different categories of high-end consumption is mainly determined by the four dimensions of VIC customer base share, consumption order/immediate demand level after increasing wealth, supply elasticity, and consumer trends. CITIC Construction Investment believes that the categories with strong initial demand in the middle and early stages of high-end consumption will be the first to recover, and the categories with a large share of the VIC customer base in the later stages are highly elastic, and the supply pattern lasts the longest.