(Pimco) China's Consumer Stocks: Opportunities Despite Slower Growth

China's Consumer Stocks: Opportunities Despite Slower Growth

* A weaker macro environment and curbs on spending by government bureaucrats have hit a range of consumer businesses and, in some cases, forced a reassessment of expansion plans.
* While Chinese consumption may be challenged in the near term, we think the impact will be felt most in the retail sector where slowing demand is compounded by oversupply.
* We see opportunity in other sectors that benefit from secular demand growth and constrained supply or strong brands, notably casinos and luxury sectors.