Source: LIVEMINT
China’s so-called new consumer stocks are on a tear.
Bubble tea maker Mixue Group jumped as much as 4.7% during intraday trading Thursday, while rival Guming Holdings rose more than 5% at its high. The moves defied a wider lull in Hong Kong’s stock market, compounding gains for investors who have bet on Generation Z consumption — an increasingly popular play.
Investors are on a feeding frenzy for brands that have appeal to the younger generation, lifting a varied group of shares seen as new consumption plays. That is hurting demand for the shares of companies selling old-fashioned consumer staples, including the makers of hard liquor.
The recent gains mean Mixue’s market capitalization is now around $27 billion, putting it above that of Luzhou Laojiao Co., one of China’s major distillers. The shift followed the bubble tea maker’s 170% jump since its initial public offering in February, a move that has helped fuel interest in other listings now in the pipeline.
The combined market value of five of the top sellers of boba drinks, including recently-listed companies Auntea Jenny Shanghai Industrial Co. and Chagee Holdings, totaled almost 290 billion yuan as of Wednesday. That is over half the size of Wuliangye Yibin Co., China’s second largest distiller and one of the largest stocks onshore.
Read: Gen Z’s ‘Emotional Consumption’ Fuels Wild Stock Moves in China
Recent government directives reining in the consumption of alcohol at official receptions have dealt a blow to the sector. Luzhou Laojiao’s share price has fallen more than 3% since a Sunday notice telling officials to watch their spending on alcohol and cigarettes. Shares of Kweichoi Moutai Co., China’s biggest liquor maker, have lost around 2% this week.
©2025 Bloomberg L.P.
This article was generated from an automated news agency feed without modifications to text.
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