A new consumption trend called "emotional spending" is gaining momentum in China's Hong Kong Special Administrative Region, with many young people, particularly Gen-Z consumers, turning to affordable, mood-boosting purchases that offer emotional rewards.
Pop Mart, a Beijing-based firm, is best known for selling toys in "blind boxes" where buyers don't know what they're getting until they open the box.
"When you get the secret, you will be very thrilled. It's kind of a way for us to release our stress," said Daniel Chau, a consumer in Hong Kong.
That is one of the reasons behind an emerging consumption trend among young people, whose focus is on splurging on things that make them feel good.
A graduate from the Chinese mainland says she pinches her pennies when it comes to meals, but she's willing to spend on these pressure-relief toys.
"After entering a job, we will feel stressed. Rent, water, electricity and transportation all require money, but our salary is not high. Therefore, we will have economic pressure as well as work pressure," said Hu Shuangni, the graduate, adding that these dolls at the Pop Mart store makes her happy.
Psychologists say the trend is about younger consumers finding products they connect with right now.
"They want to spend money on things, for example, on brands and products and services that are actually consistent with how they perceive their life and also their sense of value. It's not transactional or financial, but rather a lot more emphasis has been placed on their emotional well-being," said Sami Wong, founder and managing partner of 3Drips Psychology, Research and Consulting.
The popularity of Gen-Z favorites, like Pop Mart, the company behind the popular Labubu dolls, jeweler Laopo and tea chain Mixue saw sales soar last year. Besides toys, Gen-Z consumers -- those who are born between 1997 and 2012 -- are also spending on travel and concerts.
In Hong Kong, a survey by a communications firm found that the generation makes up 22 percent of the city's population, but commands an annual spending power of 6 billion U.S. dollars.
Gen-Z spending provides a bright spot for China's consumer industry, but economists say this group of consumers don't have much appetite for big ticket items, such as real estate and cars.
"If we have the Gen-Z are not spending as much, with a weaker consumer sentiment, and definitely, only relying on exports will not be enough to fully buffer this broad pressure on consumption. So I think this is why finding ways to stimulate consumption in China seems to be one of the priorities in 2026 to stabilize growth," said Gary Ng, senior economist at Natixis Corporate and Investment Banking.
As authorities look for new ways to boost consumer demand, experts say this trend also offers companies opportunities to find things that spark joy in consumers.
"Emotional spending" takes hold in Hong Kong amid broader youth-led consumption
More of China's A-share listed companies have disclosed major contract wins and full order books at the beginning of 2026, underscoring a solid start in the year and sending positive signals of a steady recovery and strong endogenous momentum in the country's economy.
Since the start of the year, more than 100 listed companies have announced major bid wins or contract signings, according to financial data company Wind data.
The newly secured orders span a wide range of sectors, from large-scale domestic infrastructure projects to international market cooperation, featuring sizable volumes and a diversified structure.
These developments have laid a sound foundation for corporate operations throughout the year while reinforcing confidence in China's economic recovery.
"Contracts worth over one billion yuan (around 144 million U.S. dollars) have been concentrated mainly in the infrastructure sector. Since the beginning of this year, listed companies have secured major project orders totaling more than 43 billion yuan (around 6.2 billion U.S. dollars). The launch of these projects has brought direct business support for enterprises while boosting market confidence in economic recovery, further vitalizing the industrial chain," said Tian Lihui, dean of the Institute of Finance and Development at Nankai University.
Infrastructure investment is also increasingly integrated with national strategies such as new energy and smart cities, with traditional infrastructure showing a clear trend toward intelligent and green upgrading.
In the ecological and environmental protection sector, several new projects worth hundreds of millions of yuan have been initiated, covering sanitation services, water conservation and waste treatment, highlighting green infrastructure as a new growth driver.
And a number of listed companies reported that overseas orders have significantly supported earnings growth.
With improving business performance, companies are becoming more proactive in disclosing order information, particularly during earnings forecast periods, to convey positive signals to the market.
Wind data show that more than 750 listed companies voluntarily disclosed order developments in 2025, accounting for 13.75 percent of the total.
Nearly 60 percent of companies with full orders are expected to see year-on-year net profit growth or significantly narrowed losses in 2025, with growth momentum likely to sustain into 2026.
Among them, 16 companies are projected to maintain net profit growth of over 10 percent from 2025 to 2027.
"The trend significantly reflects the longer-term vision of corporate performance, with the market now able to assess prospects over one or even two years rather than just a single quarter as before," said Zhang Yusheng, chief strategy analyst at Everbright Securities.
Industry observers believe that, amid sustained improvement in performance, the proactive disclosure of orders by listed companies helps stabilize market expectations, boost investor confidence and highlight growth potential, guiding capital toward high-quality enterprises.
A-share firms report strong order intake
