Hang Seng Index Company: Hang Seng Consumer Index Outperforms the Overall Market since the Beginning of the Year, Consumption Continues to Be a Policy Focus.

The Hang Seng Index Company stated in a document that consumption has always been an important cornerstone of the Chinese economy. The government work report for 2026 further affirmed its importance, with boosting consumption once again listed as the top priority among the government's top ten tasks. With the support of favorable policies, Hong Kong-listed consumer stocks represented by the Hang Seng Consumer Goods Index ("HSCGSI") have outperformed the market since the beginning of this year. Consumption is listed as the top priority among the top ten government work tasks for 2026 The National People's Congress of 2026 was held from March 5 to 12, during which government officials announced the government work report and major economic goals, including Gross Domestic Product (GDP) and inflation. Once again, consumption has become a policy focus. In the 2026 government work report, "building a strong domestic market" was listed as the top priority among this year's top ten government work tasks. Special actions to boost consumption include allocating 250 billion yuan of ultra-long-term special national bond currency to support the old-for-new consumption of consumer goods, as well as establishing a 100 billion yuan fiscal and financial coordination to promote domestic demand special fund, using a combination of methods such as loan interest subsidies, financing guarantees, risk compensation, etc., to support the expansion of domestic demand. Consumption is an important driver of China's economic growth, therefore it is highly valued at the policy level. China's GDP reached over 140 trillion yuan in 2025, growing by 5% annually. Among them, final consumption expenditure drove economic growth by 2.6 percentage points, equivalent to contributing 52% of the overall GDP growth, up from 47% in 2024, reflecting the increasing importance of consumption in supporting China's economic growth. Hang Seng Consumer Goods Index outperforms the market since the beginning of the year Consumption is not only the main contributor to China's economic growth but also a policy focus, so tracking the performance of consumption-related securities helps evaluate China's economic situation. Launched in August 2015, the Hang Seng Consumer Goods Index reflects the overall performance of the largest 50 companies listed in Hong Kong that provide products and services related to daily consumption. As of March 20, 2026, the Hang Seng Consumer Goods Index has risen by 2.3% since the beginning of the year, outperforming the market represented by the Hang Seng Composite Index ("Hang Seng Index") which has seen a decline of 2.5%. In terms of business subcategories, as of March 20, 2026, household appliances are the largest business subcategory of the index, accounting for 16.4% of the weight, followed by catering (11.7%) and clothing (11.1%). It is worth mentioning that many well-known brands such as POP MART, ANTA SPORTS, and MENGNIU DAIRY are among the top ten constituent stocks of the Hang Seng Consumer Goods Index. The top ten stocks together account for 60.3% of the index weight.