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Rise Of China's Secondary Consumption: Key Stocks To Watch

The era of China's investment-led growth seems to have ended. The country's economic growth is expected to be driven by household consumption. Data released Monday showed China's retail sales growing 4.0% year-on-year in the first two months of 2025, accelerating from December's 3.7% growth.

Given China's subdued economic growth, consumers are increasingly shifting toward secondary consumption (preowned and refurbished), prioritizing affordability and sustainability.

Here's a look at companies capitalizing on this trend and their recent performance.

PDD Holdings Misses Q4 Revenue Estimates

PDD Holdings Inc. (NASDAQ:PDD), parent of Chinese e-commerce platforms Pinduoduo and Temu, announced its fourth quarter and fiscal year 2024 results on Thursday.

Although the company generated strong growth across all key metrics, quarterly revenues fell short of elevated expectations. Total revenues grew by 24% year-on-year in the fourth quarter to RMB 110.61 billion ($15.15 billion), missing the consensus estimate of RMB 115.15 billion.

Operating profits rose 14% year-on-year to RMB 25.59 billion ($3.51 billion), while non-GAAP earnings stood at RMB 28 billion ($3.86 billion). Adjusted earnings per American depositary share (ADS) came in at RMB 20.15 ($2.76), beating expectations of RMB 19.84.

"Looking ahead, we will continue to prioritize investments in the platform ecosystem as the cornerstone of our long-term value creation strategy," Jun Liu, VP of Finance at PDD Holdings, ...