Shoppers at a duty-free shop in Haikou, China’s Hainan province on June 28, 2020.
Luo Yunfei | China News Service | Getty images
Millennials will drive Chinese consumption growth in the coming years and their spending habits will determine which consumer stocks could be the winners, Japanese investment bank Daiwa said.
The bank identified three stocks that could join this trend, and has a target price for one that’s nearly 40% higher than the last closing price.
Consumer spending in China is projected to grow an average of 5% annually between 2020 and 2025, Daiwa said in a report on Monday.
Millennials – or those aged 24 to 39 – make up about 30% of the Chinese population and will be the main driver of that growth, the bank said.
“Given this collective purchasing power, it is imperative to understand millennials’ consumption and lifestyle preferences in order to identify the potential winners in the consumer’s discretion over the next decade,” the report said.