Shares of China’s homegrown sports brands such as ANTA Sports jumped more than 5% on Friday as the world’s third most valuable sportswear maker is expected to be a big winner from the Beijing Winter Olympics.
Another likely winner is Li Ning as it also looks to build on the Olympics and a broader trend among mainland consumers to be more health-conscious.
Shares of ANTA, a Games sportswear partner, rose as much as 5.2% to HK$122.60 ($15.75), their highest since January 25 and set for the biggest daily percentage gain since January 20. ANTA also owns brands such as Fila, Salomon and Descente.
“The Winter Olympics is a new stimulus for China’s sports brands and ANTA is set to benefit from a robust prospect for the segment going forward,” Linus Yip, chief strategist at First Shanghai Securities, said.
Smaller rival Li Ning jumped as much as 6.6% to HK$80.35, the highest since January 26, and set for the biggest daily percentage rise since November 3.
“Li Ning will remain a beneficiary of China’s growing China sportswear market in the long run,” Anita Chu, equity analyst at CCB International in Hong Kong, said.
“Downside risks are another large-scale outbreak of Covid-19 in China and rising competition,” she added.
The Beijing Winter Olympics officially open on Friday (February 4).
- Reuters, with additional editing by George Russell