UBS Investment Research
China/Hong Kong Consumer Sector

Release date: 24 October 2008

Contents page
Summary and investment case 3
Consumption remains strong 7
— Rural consumption a key growth driver ..................................................................7
— Urbanisation creates incremental consumption .....................................................9
— Trading up: the emerging middle class ................................................................11
— Trading down: urban households .........................................................................12
Lower earnings visibility 16
Refinancing risk assessment 22
Key stock picks 27
Sub-sector updates and analysis 28
— Food and beverage ..............................................................................................28
— Retailers and white goods makers .......................................................................32
— Specialty retailers and others ...............................................................................34-113