Food, textiles, and other domestic demand sectors are rising against the trend! Institutions: Consumption is a sector that cannot be ignored by 2026.

What is the basis for AI and institutional predictions of a consumption turning point in 2026?

On March 30, technology and power sectors saw a high-level sell-off driven by risk-avoidance sentiment, while domestic demand sectors rose against the trend at low levels. Sectors such as petroleum and petrochemicals, food and beverages, textiles and apparel, and building materials performed in the lead.

Multiple institutions recently advised focusing on the domestic demand sector, and 2026 will be the key year for establishing a turning point in the consumer industry’s business conditions.

Renowned analyst Mu Yiling recently pointed out: Consumption is a sector that cannot be ignored in 2026. The negative impact of real estate on consumption can be referenced to Japan. After housing prices fall into a deep-water zone, consumption becomes desensitized to housing and enters a range of independent development.

Mu Yiling also noted that the sharp increase in foreign exchange settlement volume by China’s export companies will expand the domestic money supply, thereby raising the inflation level, and ultimately provide important support for corporate earnings and the recovery of consumption.

Mu Yiling is currently the Chief Strategy Analyst at Guojin Securities, and in recent years has been widely recognized for his “physical assets” analysis framework.

Given the current scarcity of the domestic demand sector—“strong policy + low valuation + low crowding + a fundamental recovery turning point”—stock prices may rebound ahead of the fundamentals. Keep an eye on the following ETFs on market dips:

Consumer ETF Huaxia (510630.SH), tracking the SSE main consumer industry index, balanced coverage of consumer sub-sectors such as liquor, dairy products, condiments, soft drinks, and beer;

Optional Consumption ETF (562580.SH), tracking the CSI All-Consumer Index, excluding food and beverages, focusing on optional consumption areas such as automobiles, home appliances, and commerce and retail, benefiting from the continuation of the “Two New” national subsidy policies;

Food ETF Huaxia (159151.SZ), tracking the CSI All-Consumer Index for Food, completely excluding liquor and beer, with a stronger focus on mass food sub-sector leaders such as dairy products, condiment fermentation products, meat products, and casual snacks. Among them, condiments account for nearly 30%;

Food and Beverages ETF (515170.SH), tracking the CSI sub-segment food index. Equity weight of leading liquor stocks from first- and second-tier companies accounts for over 60%;

Tourism ETF (562510.SH), tracking the CSI sub-segment tourism index, focusing on service consumption and excluding goods consumption, covering sub-sectors such as duty-free, airlines, hotels, and hotel dining and catering;

Consumer ETF Huaxia (513230.SH) for the Hong Kong stock market (via the Stock Connect), tracking the CSI Hong Kong Stock Connect consumer theme index, including new consumption high-elasticity assets such as trendy collectibles and gold jewelry, supporting T+0 intraday round-trip trading.