Shopping Mall Growth Slower in June amid Weak Consumer Sentiment

Research evidence excerpt

Shopping Mall Growth Slower in June amid Weak Consumer Sentiment

Idea

July 15, 2026 05:54 AM GMT

Morgan Stanley Asia Limited+MChina Property Management & Services | Asia Cara Zhu

Pacific Equity Analyst

Cara.Zhu@morganstanley.com +852 2848-7117

Stephen Cheung, CFA

Equity AnalystShopping Mall Growth Slower Stephen.Cheung@morganstanley.com +852 3963-0385

in June amid Weak Consumer

Sentiment

China Property Management & Services

Leading mall operators delivered flat-LSD% SSSG (excl. auto Asia Pacific

sales) in June, moderating from May, partially due to high base, Industry View Attractive

unfavorable weather, and promotional seasonality. July-Aug data Related reports:

key to watch with normalizing comps.

Longfor Group Holdings Ltd.: Mixed Outlook

Stock ideas: We view the 2Q SSSG performance as being skewed by several with Improving Recurring Income but Deeper

transient factors, including holiday calendar effects, unfavorable weather, gold price Development Loss (10 Jun 2026)

fluctuations, and weaker auto sales. With subsidy-related disruptions fading in 2H, China Property Management & Services: 2025

SSSG should show a more stable underlying trend. We reiterate our preference for Results Review: Navigating the New Normal (13

CR Mixc (1209.HK, OW) as an alpha play with strong market consolidation capability Apr 2026)

alongside a defensive c.5% dividend yield. However, near term, softer retail sales China Property Management & Services:

could drive share price volatility; we advise investors to closely monitor July-Aug Shopping Mall Operators – Identifying

data, we would use any near-term weakness to accumulate. Beneficiaries amid Market Polarization (7 Nov

2024)

Adjusted offline retail sales (ex-autos) reaccelerated to 2.6% in June (vs. +0.5%