HK Stock Market Move | Strong lifting of catering stocks, Ministry of Commerce will launch a batch of new policies in the consumer sector. The sector will benefit from both fundamentals and emotions.

The catering stocks performed strongly, as of the time of writing, HELENS (09869) rose by 16.04% to 3.4 Hong Kong dollars; JIUMAOJIU (09922) rose by 12.98% to 4.09 Hong Kong dollars; XIABUXIABU (00520) rose by 9.17% to 1.19 Hong Kong dollars; HAIDILAO (06862) rose by 6.46% to 17.46 Hong Kong dollars. On the news front, Sheng Qiuping, Deputy Minister of Commerce of the country, recently stated that the Ministry of Commerce will work with relevant departments to introduce a batch of new policies in the consumption sector. Five cities will also introduce supporting policies. For example, Shanghai and Guangzhou will introduce policies to support and reward first store openings, first releases, and first exhibitions; Beijing, Tianjin, Shanghai, and Chongqing will issue consumer vouchers for catering, tourism, sports, and other services. Guosen believes that in the first half of 2024, the operating performance of companies in the catering sector will be under pressure, but leading catering companies with strong supply chain foundations and strong brand consumption stickiness still have a relatively advantageous operating performance and record good alpha growth. Considering the frequent series of consumer promotion measures recently, the catering sector is expected to benefit from both fundamental and sector sentiment perspectives, while also considering the certainty of operating performance and the expected gradual recovery of the consumption environment.