While the structural growth in Chinese consumption, driven by the rising middle class, is well known, finding the right stocks to invest in can be a challenge. Key issues faced by many Chinese consumer companies over the past decade have been fragmented markets, intense competition and competitors being focused on... Show More
Sure have - we like 1717 HK and 1112 HK in the infant formula space (and vitamins). Both are fairly small (for China) but are seeing high growth given the strong infant formula market, both are taking share and consumers are trading up to premium products. Yili is the leading national brand (along with 2319 HK) in the liquid milk and yogurt space (it also has infant formula). Yili is more a high quality proxy for the overall structural growth in the Chinese dairy industry. All 3 companies are attractive in my view.