economy

January 11, 2026

Where stock analysts predict China’s consumers will spend in 2026

Beneath China's flat consumer prices, trends are emerging in the experiences economy.

Where stock analysts predict China’s consumers will spend in 2026

TL;DR

  • Analysts see opportunities in China's discretionary and services spending sectors, including food and beverage.
  • Services-heavy sectors align with government goals to support employment and may benefit from tourism stimulus.
  • Leading consumer companies maintain strong net cash positions and cashflow generation, offering dividend yields for downside protection.
  • H World is favored for growth, with predictions of positive revenue per available room in 2026, benefiting from AI and an asset-light model.
  • Yum China is seen as a steady compounder with high yield potential, strong execution, and bargaining power.
  • Midea is a preferred pick due to solid earnings growth, shareholder returns, and potential for revenue growth through overseas expansion and M&A.
  • China's extended trade-in policy may favor white goods and smart home products, providing some support for consumer spending.

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