CNBC’s China Connection newsletter: Rethinking China’s spending slump

This report is taken from the CHINA Connection newsletter issued on CNBC for this week, which provides you with visions and analyzes about what pays the second largest economy in the world. You can subscribe here.

Chinese families have Stressed their packagesReducing unnecessary spending and transformation, as some investors describe it, to “spoiled” due to an abundance of high -quality goods sold with sharp cuts.

However, an investment capital company tests these doubts – and draws attention while doing this. Black Ant Capital was established in 2016, it was dedicated to the consumer scene in China and calmly supported some of the most consumer games that have been talked about in China early 2017: Bob Mart,, Lopo Gold BusyMing Group.

Bob Mart, The company behind the madness of the blind box in ChinaIts market value is now $ 344.4 billion, Hong Kong ($ 44.2 billion). Jewelry Lapu Gold organized an amazing march This year, where approximately 17 times increased from the price of its inclusion to reach the market value of $ 15 billion. Busyming is preparing to become the latest company in the Ba Capital wallet to be launched for the first public subscription in Hong Kong.

It is clear that although it is away from the limelight, the company attracted the attention of global investors.

Ba Capital runs three boxes in Renminbi and one box in US dollars. The performance of the four funds exceeded most of its regional counterparts, according to a company spokesman, as it ranked first out of 479 private stocks and investment capital in the emerging Asian markets included in the Cambridge Associated study from the end of the first quarter.

in Milkin’s summitThe founding partner of Ba Capital David has attracted a crowd of people as soon as he leaves the theater – investors and executives who are eager to trade work cards and compliments, in the hope of getting an insight into his thinking, and perhaps an opportunity to participate in the company’s wonderful chain of revenue.

Earlier that day, I met him, who is also a member of the Bob Mart Board of Directors, in a café located a short walk from the Four Seasons Hotel, where the Milkin Institute was held this year. While eating coffee, he explained that the consumer’s story in China has not ended yet – it simply changes and becomes more interesting for those who know where to search.

This interview is translated and intensified for clarity.

What is the first thing that attracted you to invest in Pop Mart?

It was the emotional motivation behind the Bob Mart games. When we were children, we were all seeking to rest through games, and this instinct does not fade with age. We simply drop that need on other things – pets, hobbies, and even decoration. Pop Mart’s attractiveness lies in its design and its presence in intimate places, on offices or tables next to the bed, providing a sense of companionship and intimacy depth over time.

What are the trends of consumers that nurtured the rise of Bob Mart – and what supports its success?

Young consumers are attracted today to the things that make them feel connected and emotional satisfaction. They are ready to spend on something that raises joy, which is something that they can get more attached to.

Pop Mart has benefited from this trend. The company is characterized by its talented designers who make emotional and empty echoes, and its commercial team, which maintains these relevant personalities through new experiences and interactions.

What are the ready -made meals for other Chinese brands?

For brands in the middle to the high -end, especially those looking to expand abroad, they need to put their attention on the American market early and enter it completely. The United States remains the most important market with the largest power of spending and cultural impact.

What is the next for Pop Mart?

The demand for its games, which provide companionship or style, will always exist. The key is to take care of every intellectual property and find new ways to communicate with consumers – better products, more richer content, and more immersive experiences, from exhibitions to entertainment parks. Anything that deepens this feeling of reaction will maintain its importance.

What about Laopu Gold, what explains its success?

The rise of Lopo reflects two strong transformation between Chinese consumers: the consumer retreat, and the cultural shift towards local luxury.

During the epidemic, luxury international brands lost many middle -class customers, but the desire for quality and value remained. Consumers wanted distinct products that can maintain their values, such as golden jewelry that looks beautiful and durable. Meanwhile, there was a wave of pride in traditional Chinese culture, fueled by national confidence and cultural awareness.

In the era of cautious spending, Laopu Gold has provided something special – jewelry that mixes Chinese aesthetics with modern design and high -end craftsmanship.

Where do you see Laopu heading from here?

As she adapts to the new markets, Obo will keep her oriental identity. Like the Italian brands that seem modern but remain Italian in its essence unambiguously, it will develop Lopo while maintaining its roots strongly in the heritage of East Asia.

What do you see in a Busyming Budget Snake?

Low prices have dominated the Chinese consumer market since 2022, and it is likely to continue, especially in sectors where more cost cuts can be achieved by enhancing efficiency. Moreover, we have seen a stronger spending force in the lower -level cities in recent years.

Where do you see the next wave of consumer growth?

The power of spending in China is still strong, and there is an increased infatuation with products inspired by Chinese culture, which is a very strong trend among local consumers. Moreover, we see an increasing interest in self -care and emotional safety – which I call “emotional recovery”. The feminist movement also acquires strength.

What about technology -related plays?

We spend more time looking at consumer electronics – not the technology itself, but how to translate innovation into products that meet the demand of consumer. They include independent electrical brooms, drones, and smart home appliances.

BA CAPITAL has supported many brands, such as Oladance, a Chinese headphone manufacturing company, TenWays Electric Bikes, and Yarbo, which produces independent snow slips.

How is Ba Capital put out of the exit options?

About 80 to 90 % of our exits came through the initial public subscriptions. While we see the increasing potential to unify the industry, the chances of integration and acquisition, we do not look at it as a basic exit way. Investing with the status of integration and acquisitions in mind is the wrong starting point – you will not be able to find the best companies in this way. We aim to invest in the best players, and for them, the public subscription is the natural path.

– Benny Chen of CNBC contributed to this report.

The World Bank raised its forecast for growth in China to 4.8% despite American trade tensions. the New expectations This was part of a total increase in the East Asian and Pacific expectations, making expectations closer to Beijing’s official goal of A growth of about 5% For 2025.

BYD sales rose in September in the United Kingdom Chinese electric car industry company BYD He sold 11,271 cars In the United Kingdom Last month, which represents an annual growth of 880 %. The sales have raised its total annual to a little more than 35,000 in the country, making the United Kingdom its largest market outside China.

The initial numbers of the Golden Week holiday indicated a slowdown in consumer spending. The average daily domestic passenger trips, retail sales and restaurant revenues rose at a much slower pace than the Labor Day in May, according to Nomura. The number of flights across the border in the first six days of the holiday, which lasted eight days, remained less than before the pre -epidemic levels.