On September 23, Jefferies released a research report noting that the extended combined holiday period for China's Mid-Autumn Festival and National Day Golden Week is expected to boost demand for dining out and travel, particularly for long-distance trips, though the final increase will depend on consumer sentiment. The firm believes current consumer sentiment remains weak, prompting consumers to concentrate discretionary spending around major holidays, with the Lunar New Year remaining the most important consumption peak, followed by the Golden Week.

Jefferies also expects Hong Kong retail to benefit from improved conversion of visitor spending, with mainland Chinese tourists maintaining high spending conversion rates, outbound consumption leakage stabilizing, and a stronger renminbi boosting purchasing power. Within its coverage, Sa Sa International Holdings Limited (HKEX: 00178) stands to benefit the most.

The firm prefers traditional consumer stocks, with top value picks including Yum China Holdings Inc (HKEX: 09987), China Resources Beer (Holdings) Company Limited (HKEX: 00291), Foshan Haitian Flavouring and Food Company Ltd (SSE: 603288), WH Group Limited (HKEX: 00288), and H&H International Holdings Limited. For high-growth new consumer plays, preferred names include Luckin Coffee and Ming Ming Hen Mang (HKEX: 01768), among others.