China Sportswear Weak E-Commerce Sales
  • June 26, 2023
  • Team Hongkong Journalist
  • 0

On June 18th, Chinese sportswear stocks declined in early trade on Monday, the case reported in a shopping festival held on an E-commerce platform. The discussion is going on for stimulating measures.

Anta Sports fell 4.5% to 87.45 Hong Kong dollars ($11.18), while Li Ning slid 5.1% to HK$47.05 and Topsports shed 4.2% to HK$7.12.

However, some time back reporters reported that Chinese Sportswear stocks rose and that Beijing was working on new stimulus measures to fulfill its aim of becoming the second-largest economy.

Over the weekend, Jefferies analysts said on a fact check that sportswear and home appliances e-commerce growth comes in between 10-15% on year during China’s June 18th shopping festival. Consumer cancellation rates are naturally high leading to unsuccessful expectations.

“Judging by the initial rates of refunds and cancellations, we expect this 618 campaign to see one of the most significant downward revisions to gross merchandise value,” Jefferies adds.

A State Council meeting on Friday yielded “no concrete stimulus,” Goldman Sachs Chief China Economist Hui Shan said in a note over the weekend.

While Premier Li Qiang called for a basket of easing measures, “the readout suggests to us that the government faces various economic and political constraints,” the economist wrote. “Going down the old route of boosting short-term growth with massive property and infrastructure stimulus goes against the top leadership’s ‘high-quality growth’ model.”

There is a low GDP encountered i.e. 5.4% for China, which was 6.0% previously.

A year ago, China’s May retail data grew by 12.7% but the growth estimate was 13.1% which was missing. The April 18.4% rise has been observed by the Wall Street Journal.

- Published By Team Hongkong Journalist

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