Across The Border | Young, wealthy Chinese choose entertainment, travel and health ahead of shopping
HSBC study shows 18 to 34-year-olds love imported goods, especially, and turn to friends for advice on everything from investment to infant formula
Young, wealthy Chinese are turning their backs on traditional shopping in favour of spending their hard-earned cash on entertainment, travel, e-commerce and healthy living, and 12 stocks have been highlighted as standing to benefit from the changing habits, according to a new lifestyle survey from HSBC.
As corporations in many sectors looks to a rise in Chinese consumer spending as the next driver for growth, the next generation of Chinese – wealthier, and at a younger age than their parents – are being tipped as the most-crucial group, said Erwan Rambourg, HSBC’s global co-head of consumer and retail.
The bank surveyed more than 2,000, 18 to 34-year-olds in major cities from August 10 to August 15, all with household incomes above 120,000 yuan a year.
“Most notable were the reality of travel (even domestic), the very high regard consumers have for imported goods, the influence of friends in many decisions and the soaring relevance of e-commerce platforms,” said Rambourg.
He acknowledged that the 2,000 snapshot may not be enough to form any meaningful opinion on a stock. However, the survey results have “reinforced” the bank’s decision to put “Buy” recommendations on a dozen stocks:
● Chinese e-commerce giant Alibaba
● Internet search engine Baidu