Market Dynamics Surrounding Lao Feng Xiang Co. Ltd. on 29 October 2025

The Shanghai‑listed conglomerate Lao Feng Xiang Co. Ltd. (600612) has solidified its position as a magnet for institutional capital in the latest trading session. According to Wind data, the stock has experienced a sustained influx of net buying by major funds for 12 consecutive trading days, a figure that eclipses all other names on the Shanghai and Shenzhen exchanges. This streak of positive inflows is a clear indicator that large‑cap investors remain confident in the company’s long‑term prospects.

Technical Breakthroughs and Momentum Signals

  • Half‑year and year‑line crossings:

    • On the morning of 29 October, Lao Feng Xiang’s share price crossed both the 6‑month and the annual moving averages, registering gains of 1.85 % and 1.69 % respectively.
    • The 6‑month line sits at 48.81 CNY, while the annual line is at 49.24 CNY. At a closing price of 49.50 CNY, the stock has outperformed these long‑term averages by a comfortable margin, suggesting a bullish trend that is gaining traction.

  • Relative strength:

    • The stock’s 10‑day relative strength index (RSI) is comfortably above 70, indicating that momentum is still on its upward swing.
    • The deviation from the 6‑month line is modest (1.42 % for the 6‑month break and 0.36 % for the year‑line break), implying that the price move is still within a healthy range of its longer‑term trend.

Institutional Support and Market Sentiment

The sustained net buying over a 12‑day period is not an isolated phenomenon. Other companies such as Dai Mei Gong Shang, Zhe Wen Hui Lian, and Tong Bao Sheng Wu have also attracted significant net inflows, but none have matched the depth and persistence seen in Lao Feng Xiang. The concentration of institutional capital suggests that the stock is viewed as a “safe‑haven” within the consumer discretionary space, especially given its stable earnings profile and diversified product portfolio spanning gold and jewelry, pencils and manufacturing equipment, and general trading.

Fundamental Context

  • Market capitalization: 25.46 billion CNY.
  • Price‑earnings ratio: 14.41, comfortably below the sector average for consumer discretionary firms.
  • Recent performance: The share price closed at 48.69 CNY on 26 October, rising to 49.50 CNY on 29 October, a 1.6 % increase that reflects the momentum captured in the technical indicators.

Given the company’s longstanding IPO history (June 1992) and its focus on high‑margin luxury goods and manufacturing equipment, the current market trajectory aligns with a narrative of continued strength in both consumer demand and industrial production.

Forward‑Looking Outlook

The convergence of sustained institutional buying, technical breakouts, and favorable valuation metrics positions Lao Feng Xiang as a compelling play for investors seeking exposure to China’s consumer discretionary sector. While macroeconomic headwinds persist, the company’s diversified revenue streams and strong cash generation capabilities provide a cushion against short‑term volatility. Market participants should watch for the stock’s reaction to the next quarterly earnings report, as any shift in earnings growth or margin expansion will likely serve as a key catalyst for further price appreciation.