“China’s Consumer Discretionary sector is the country’s largest by total market cap, yet it is still just half the size of its US counterpart. This is despite the fact that China’s population is four times larger than the US’s and is experiencing a rapidly growing middle class, suggesting that the sector is still in its early stages of growth,” according to Global X.
As it is in the U.S., e-commerce and online retail are significant contributors to China’s consumer discretionary sector.
“As the world’s leading e-commerce market, China accounts for more than 40% of the world’s e-commerce transactions, up from just 1% from a decade ago,” said Global X. “With rising highspeed internet coverage and broad adoption of mobile payments, e-commerce platforms in China are growing fastest in the country’s smaller Tier 3 and 4 cities, where access to online stores provides greater convenience and wider selection to customers.”
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