Modern chain store formats have dominated global retailing over the past decades. The China
market is still in its early stages of development and offers room for domestic and foreign players.
Wal-Mart’s success in overtaking Kmart to lead the world’s retail industry should shed some light
on the future winners in China.
Overall, we believe top Chinese retailers and brand consumers will continue to ride on the robust
domestic consumption in the coming few years. Our stock selection screen is based on a house
scoring system, specifically assessing fundamental performances across leading consumer counters
in China. Strengthened market positions and solid earnings growth of selective strong players
should sustain stock ratings and propel further performance ahead.