The "policy gift package" in China has triggered a luxury stock frenzy, with LVMH and Hermès both rising nearly 10%

The series of stimulus policies recently introduced by the People's Bank of China aimed at boosting the domestic economy have boosted confidence in the Chinese economic recovery. This has lifted the optimistic sentiment in the luxury goods market, driving luxury concept stocks across the board.

In the US stock market, the stock prices of LVMH Moët Hennessy - Louis Vuitton, Société Européenne and Hermès International Société en commandite par actions both rose by nearly 10% in early trading.

In the European stock market, the stock price of LVMH Moët Hennessy - Louis Vuitton, Société Européenne rose by over 9.4%, while Hermès and Kering Group rose by at least 8.8%. Burberry rose by approximately 8.1%, and the stock prices of brands such as Diageo, Richemont, L'Oréal, Beiersdorf, and Hugo Boss saw increases ranging from 7.9% to 4.78%.

Previously, due to global economic uncertainties, luxury stocks had a relatively weak performance throughout the year. As of the Wednesday close of the US stock market, LVMH Moët Hennessy - Louis Vuitton, Société Européenne had fallen by nearly 7% year-to-date, while Hermès ADR had only risen by over 6% year-to-date.

LVMH Moët Hennessy - Louis Vuitton, Société Européenne and Hermès are renowned for their handbags and high fashion designs, which are often seen on runways worldwide. China, as the world's largest consumer market with a population of 1.4 billion, plays a crucial role in luxury consumption.

In terms of analyst ratings, LVMH Moët Hennessy - Louis Vuitton, Société Européenne currently holds a unanimous "moderate buy" rating from 16 Wall Street analysts. This rating is based on 10 "buy" recommendations and 6 "hold" recommendations in the past three months, with no "sell" ratings. The average target price given by analysts is €778 (approximately $867.14), indicating a potential upside of about 15.72% from the current stock price