Shares of China’s home-grown sports brands such as Anta Sports jumped more than 5 per cent on Friday as the world’s third most valuable sportswear maker is expected to be a big winner from the Beijing Winter Olympics as the games kick off.
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, an official sportswear partner of the 2022 Beijing Winter Olympics Games and Paralympics Winter Games, rose as much as 5.2 per cent to HK$122.60, their highest since Jan 25 and set for the biggest daily percentage gain since Jan 20.
Anta also owns brands such as Fila, Salomon and Descente.
Smaller rival Li Ning jumped as much as 6.6 per cent to HK$80.35, the highest since Jan 26, and set for the biggest daily percentage rise since Nov. 3.
“The Winter Olympics is a new stimulus for China’s sports brands and Anta and Li Ning, as the industry leaders, are set to benefit from a robust prospect for the segment going forward,” said Linus Yip, chief strategist at First Shanghai Securities.
“Their current valuation, after adjustment, also provides a good entry point for bargain hunting.”
The Beijing Olympics officially opens on Friday, an occasion that Chinese President Xi Jinping said will be streamlined, safe and splendid.
- Reporting By Donny Kwok and Anne Marie Roantree; Editing by Stephen Coates, of Reuters.
