Low valuations combined with capital allocation present structural opportunities in the consumer sector.

Recently, the market style has undergone a rebalancing, with the consumer sector regaining attention from investors. The CSI Consumer Index has surged nearly 10% since July. The scale of consumer-themed ETFs has also continued to grow recently. Industry insiders believe that the current consumer market more reflects a rebalancing of capital allocation and a warming expectation of valuation recovery, and that the future performance of the sector will need to be observed in light of the recovery of domestic demand and improvements in corporate earnings. From an investment perspective, the recovery of leading traditional consumer stocks, the overseas expansion of consumer goods, and new consumption scenarios have become focal points for institutions.