fbpx

Type to search

Games Fever Boosts China’s Domestic Sports Brands

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


A customer looks at Li Ning shoes at a shop in Beijing. Photo: Reuters.

 

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

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

 

 

READ MORE:

Games Will Make China a Winter Sports Power, Says IOC Boss

New Motorsport Chief Pledges Bigger Role for China and India

Gaming Curbs Leave E-Sports Stars Fearing For Their Futures

 

 

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

logo

AF China Bond