A 30-year-old Chinese fund manager, who is equipped with a portfolio with a gene favorio this year such as the POP Mart International Group, points out that new shopping trends can contribute to overcoming the country’s economic inertia.
The Penghua of Xie Tianyuan was returned 24% this year and under the top 3% under the top 3%, data from Fund Tracker East Money Information Co. Show. This is a turnaround from its recent past, in which traditional sectors such as alcoholic beverages and agricultural performance have participated.
The fund manager based in Shenzhen, who took over at the beginning of 2024, wasted little time to replace the top holding of the Kweichow Moutai Co. fund, a Baijiu distiller, with the manufacturer of Smash-Hit-Labubu dolls, Pop Mart.
His repositioning for the fund, which has a fortune of around $ 7 million, reflects how the cultural changes that create the cultural changes and youth spending will create opportunities for Chinese investors who navigate broader challenges in the second largest economy in the world.
His conviction strengthened after he had witnessed the popularity of the products of the iodist in Thailand, which, as he says, “shows non-linear growth with every metric”.
The growing up into the Japanese anime culture -his desk is decorated with Dragon Ball Z figures -said Xie, he has developed an eye for identifying a variety of characters or designs that are called “IP brands” by mixing personal fandom and online research. That he himself is a member of Generation Z, the driving force behind China’s new “emotional editions” Consuminghelps him understand what can be resonance beyond advertising and become viral.
“The possibilities in the sector in the coming years will be at the only stock level when the population dividend comes to an end,” he said. “I choose companies that have groundbreaking products, new business models and innovative sales channels – products that are both visually appealing and fun.”
His top selection, Pop Mart, made up 10.5% of the total assets of the fund in March. Other big bets are Mao Pinge Cosmetics Co., an increase of 83% this year as well as Chongqing Baiya Sanitary Products Co. and Yantai China Pet Foods Co.
Xie’s strategy is firmly in the target group on the gen z consumer trend, in which the purchase decisions of emotional triggers and hobby interest are driven. Despite Donald Trump’s impending threats, this behavioral change promoted rallies on the pockets of the Chinese stock market, especially according to the dynamics of artificial intelligence.
The stocks of the companies in the heart of this trend – including Pop Mart and Laopu Gold Co., which are known for unmistakable gold trailers – have made wild profits this year. Laopu has increased by more than 2,000% since his first public offer in Hong Kong a year ago.
Xie’s Fund has shares that trade both on the mainland and in Hong Kong. An advertisement for Chinese stocks listed in Hong Kong has increased by 20% this year. The Benchmark of the mainland, the CSI 300, had dropped by 0.3% this year.
The rally has expanded to include sectors such as medical aesthetics, homemade food and even vape products. Another potential area for Xie: Tap the increasing popularity of sparkling yellow wine.
“The border between what is considered a” old “and” new “consumption is incredible, and more companies will join the new consumer, as soon as they realize that there is no future for them that runs out in their comfort zones,” said Xie. “Even old trees can sprout new shoots.”
Nevertheless, the consumer -controlled rally shows cracks. Pop Mart fell after a daily comment by a people on June 20 that is available after stricter regulation From “Blindbox” Spey products in sealed packaging, which are intended to hide content and to collect it and more surprising and more desire to collect them. Laopu will be exposed to higher sales pressure on Friday after the IPO has expired.
In the meantime, many gene stock shares are close or above their average price targets and drive the analysts to constantly find reasons to increase their prospects.
Xie admitted that the ratings in this sector may be ahead of the basics, with some shares already being present for three to five years.
Nevertheless, it remains optimistic overall, especially with the shares in which he has invested heavily.
“The profits may look incomprehensible to some people, but everything is actually rooted in income,” he says. “The growth for some is underestimated, while others are only in the early phases of their life cycle.”
