Stock investors are capitalising on the spending power of China’s Generation Z consumers, who splurge on everything from intellectual property (IP) toys to low-priced drinks, reaping multifold returns on so-called new consumer stocks.
The ascent of Pop Mart International Group, Mixue Group and Laopu Gold is one of the few bright spots in China’s sluggish consumer industry, which has been plagued by a weak jobs market and the deflationary trend. The robust performance has come at the cost of traditional industry names, including liquor producer Kweichow Moutai, with traders pulling out of what were once their favourite stocks.
Shares of Hong Kong-listed Pop Mart, a Chinese toymaker that owns blockbuster IP Labubu, have surged almost 600 per cent over the past year, while Mixue, a chain store that sells low-priced soft drinks and ice cream, has seen its stock more than double since its listing in February.
Laopu Gold, a jeweller that…
