China's consumer equity benchmark has hit a new record with 14 consecutive trading sessions of losses, driven by weak domestic demand. Key stocks including 600036.SS, 000858.SZ, and 300102.SZ have declined sharply, highlighting structural challenges in household spending.
- 14-day losing streak for China consumer equities marks a historical record.
- 600036.SS, 000858.SZ, and 300102.SZ experienced declines of 15% to 18% in two weeks.
- November retail sales grew just 3.2% year-on-year, the weakest since 2022.
- Consumer confidence reached its lowest level since 2020.
- CSI 300 Consumer Sector Index down 22% YTD, outpacing broader market decline.
- Export-oriented consumer firms are experiencing heightened stress and capital outflows.
China's consumer-focused equities have entered uncharted territory, marking 14 straight days of losses—the longest losing streak on record—amid persistently weak consumer demand. The downturn has affected major players across the consumer staples, retail, and cyclical sectors, with 600036.SS (China National Aviation Fuel Group) shedding over 15% in the past two weeks, 000858.SZ (Lianjia Holdings) down nearly 13%, and 300102.SZ (Sichuan Changhong Electronics) declining by 18% over the same period. The prolonged sell-off reflects deeper concerns about the sustainability of domestic consumption, which has failed to rebound despite government stimulus measures. Retail sales growth in November slowed to just 3.2% year-on-year, the weakest in over two years, while consumer confidence indices fell to their lowest point since 2020. These metrics signal that household spending remains restrained, hampered by stagnant wages, high debt levels, and cautious sentiment. Market analysts note that the weak performance in consumer equities is amplifying volatility across broader indices. The CSI 300 Consumer Sector Index has declined 22% since the start of the year, outpacing the broader market’s 12% drop. Export-oriented firms linked to domestic demand, such as apparel and home appliance manufacturers, are bearing the brunt, with investor sentiment turning increasingly negative. The downturn is not limited to individual stocks; sector-weighted ETFs and investment vehicles tied to Chinese consumer exposure have also seen significant outflows. This trend raises concerns about capital reallocation and the potential for further deleveraging in the consumer sector, particularly in companies reliant on domestic retail channels.