The authorities have halted the takeout industry’s internal competition, and the profit recovery logic for related industries has been established! Taikang Hong Kong Stock Connect Large Consumer Index ( A-shares: 006786; C-shares: 006787 ) Net value has increased for two consecutive days, with a total rise of over 5%

As of March 25, 2026, the unit net value of the Taikang Hong Kong Stock Connect Consumer Discretionary Index (Class A: 006786; Class C: 006787) increased by 1.78% compared to the previous trading day, with a cumulative increase of 5.29% over two consecutive days.

In terms of news, on March 25, the State Administration for Market Regulation issued a statement calling for an end to the “takeout war,” clearly signaling regulatory measures and directly addressing platform malicious price wars and disorderly internal competition. The goal is to guide the industry back to rational competition and improve profit expectations. Driven by this significant positive news, the Hong Kong internet sector surged across the board, with Meituan-W rising nearly 16% intraday, while Alibaba and JD.com also followed suit. The market generally believes that the industry is likely to move away from subsidy-driven, money-burning models, with the logic of profit recovery further solidified.

On March 25, Pop Mart released its full-year 2025 performance report, showing significant growth in both revenue and profit, with outstanding performance in core IP and overseas markets. The company achieved a total revenue of 37.12 billion yuan, a year-on-year increase of 184.7%, surpassing the 30 billion yuan mark for the first time; net profit attributable to shareholders was 12.776 billion yuan, up 308.8% year-on-year; adjusted net profit was 13.08 billion yuan, up 284.5% year-on-year, with gross profit margin rising to 72.1%. The IP-driven effect is evident, with THEMONSTERS family under LABUBU generating revenue of 14.16 billion yuan, a 365.7% increase, becoming the first core IP to exceed 10 billion yuan, contributing nearly 40% of total revenue; plush toy revenue reached 18.71 billion yuan, a surge of 560.6%, ranking as the largest category. Domestic market revenue was 20.85 billion yuan, up 134.6% year-on-year, while overseas markets continued high growth, highlighting the effectiveness of global expansion.

Galaxy Securities pointed out that the resilience of Hong Kong stocks comes from their valuation advantage, with low valuations attracting risk-averse funds seeking certainty. Foreign investors’ entry into Hong Kong stocks is largely driven by the valuation gap between Hong Kong stocks and other major global markets (such as US and Japanese markets). Low valuation in Hong Kong stocks is often accompanied by high dividend yields, which are highly attractive to risk-averse funds seeking stable cash flow. Looking ahead to the next six months, consumer discretionary is currently the sector with the strongest performance growth and profitability among all Hong Kong stock sectors.

The Taikang Hong Kong Stock Connect Consumer Discretionary Index (Class A: 006786; Class C: 006787) closely tracks the Hong Kong Stock Connect Consumer Discretionary Index. The CSI Hong Kong Stock Connect Consumer Discretionary Theme Index selects up to 50 Hong Kong-listed companies that meet the consumer discretionary theme from eligible securities within the Hong Kong Stock Connect scope, aiming to reflect the overall performance of consumer discretionary themed listed companies.

As of December 31, 2025, the top ten holdings of the Taikang Hong Kong Stock Connect Consumer Discretionary Index (Class A: 006786; Class C: 006787) were Alibaba-W, Meituan-W, BYD Co., Ltd., BeiGene, and Techtronic Industries, with the top ten stocks accounting for 55.95% of the total weight.

The Taikang Hong Kong Stock Connect Consumer Discretionary Index (Class A: 006786; Class C: 006787) was established on April 9, 2019. It is an index-tracking equity fund under Taikang Fund, closely following the Hong Kong Stock Connect Consumer Discretionary Index, with a focus on minimizing tracking deviation and tracking error.

Follow Taikang Hong Kong Stock Connect Consumer Discretionary Index A (006786) and its related fund (Taikang Hong Kong Stock Connect Consumer Discretionary Index C: 006787) to easily access lower-valued opportunities in the Hong Kong consumer discretionary industry.