Hong Kong-listed beauty stocks extended gains in late trading on June 1, with several names seeing broader advances across the sector. As of writing, Mao Geping was trading at HK$65.75, up 9.86%; Shanghai Chicmax Cosmetic rose 5.83% to HK$38.48; and Giant Biogene gained 2.82% to HK$29.48. Among them, Mao Geping stood out, with its share price approaching the HK$66 level intraday and leading gains in the sector.

As the mid-year 618 shopping festival enters its second half, coupled with a broader rebound in consumer-related stocks, the beauty segment has once again become a focus of market attention, with Hong Kong-listed names attracting notable capital inflows.

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Institutions Positive on Domestic Beauty Brands as 618 Enters Final Stage

Brokerages generally believe that this year’s 618 promotional season has been extended over a longer period, with platform traffic allocation and livestream scheduling playing a greater role in shaping sales momentum. Based on current trends, international beauty brands maintained relative strength during the first half of the campaign, while domestic brands are expected to see stronger exposure and conversion as the event enters its final stretch.

According to a research note from Shenwan Hongyuan, platform resources in the second half of the 618 campaign may increasingly favor leading domestic beauty brands. Supported by influencer livestream promotions and brands’ own direct-to-consumer livestream efforts, gross merchandise volume (GMV) for brands such as Proya, Kans, and Mao Geping is expected to accelerate further.

In key channels such as Douyin and Tmall, additional livestream sessions featuring beauty products by top influencers are also expected to support sales growth. In recent years, Chinese beauty brands have continued to upgrade in product development, brand positioning, and content marketing, gradually strengthening their competitiveness against international peers. The 618 shopping festival remains an important test of brand momentum and consumer demand.

Consumption Subsidy Expectations Add Support to the Sector

Beyond the 618 shopping festival, expectations for supportive consumption policies have also provided a tailwind for the sector.

Market attention has recently focused on the inclusion of cosmetics in consumer subsidy programs across certain regions, signaling stronger policy support for the beauty category. Analysts note that compared with traditional durable goods, beauty products benefit from higher purchase frequency, stronger repeat-buy behavior, and broader consumer reach, making them more effective in stimulating retail consumption.

Huayuan Securities stated that under subsidy-driven demand, conversion rates for premium skincare and makeup products could improve, while leading brands with stronger brand equity and more established distribution networks are likely to benefit first. This could further drive industry consolidation.

Premiumization Trend Continues to Support Market Sentiment

From an individual stock perspective, Mao Geping has experienced notable share price volatility recently, but investor attention has remained elevated, supported by the broader premium domestic beauty investment theme. As one of the few high-end cosmetics names listed in Hong Kong, the company maintains differentiated strengths in brand positioning, product portfolio, and offline experiential retail channels.

Meanwhile, Shanghai Chicmax continues to benefit from strong online sales growth of its Kans brand, while Giant Biogene remains highly visible in the functional skincare segment.

As more 618 sales data is released in the coming weeks, investor focus on earnings delivery among leading domestic beauty companies is expected to intensify further.

Market participants said that amid a combination of recovering consumer sentiment, platform traffic support, and policy tailwinds, trading momentum in the beauty sector may remain resilient in the near term. Sales rankings and GMV growth across leading brands will likely remain key indicators for investors to watch.