China’s beauty and personal care sector saw a strong rally in Tuesday’s trading session, with Huaye Spices (300886) surging by the 20% daily limit on the ChiNext board. The sector-wide uptick was led by strong performances from Shuiyang Co. (300740) and Jieya Co. (301108), both gaining over 10%, while Qingsong Co. (300132), Lafang Jiahua (603630), and Shanghai Jahwa (600315) also posted notable gains.
The sector’s outperformance comes amid growing investor optimism about China’s recovering consumer spending, particularly in premium beauty products. Market analysts attribute the rally to recent earnings upgrades from several domestic brands showing stronger-than-expected gross margins and market share gains against international competitors.
Trading volumes in beauty stocks reached multi-week highs, with particular interest in companies demonstrating successful product premiumization strategies. The movement reflects broader rotation into consumer defensive sectors as investors position for potential policy support targeting domestic consumption growth in the second half of 2024.
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