Chinese consumers have long powered luxury brands to new highs. But with questions surrounding China's sluggish economy and changing consumer tastes, analysts aren't so sure whether these shoppers will be able to coax the luxury sector out of its doldrums. The Chinese government's new stimulus measures announced late September revived interest in the country's economic prospects — stoking hopes it would revive luxury spending among this critical cohort.
mountain U.S.-traded shares of LVMH and Richemont against the S & P 500 in 2024 'A great wall of money' China's recent stimulus rollout — which includes measures such as financial support for real estate, interest rate cuts and looser property purchase rules — sent Chinese stocks on a roller coaster. It wasn't just Chinese companies that experienced an initial surge, however; luxury stocks also rallied 16% in the initial days following the stimulus news, per Bank of America.