Belle International Holdings Ltd. rose the most in two weeks in Hong Kong trading after Goldman Sachs Group Inc. added China’s largest retailer of women’s shoes to its “conviction buy” list.
The retailer may be among the companies poised to benefit from industry consolidation, according to a note Goldman sent to its clients late on Nov. 12. China’s top 50 retailers control 5 percent of the market, compared with 41 percent for the biggest 50 in the U.S., the Goldman Sachs analysts said.
The leading U.S. retailers “enjoyed double-digit growth until their market share reached 7 percent to 8 percent,” Joshua Lu, Caroline Li, Vivienne Mao and Source Yuan said in the note. “Their counterparts in China currently have only 1 percent to 2 percent market share” and would benefit from consolidation that may take place over the next decade, the analysts said.
Belle, which was included in the Hang Seng Index in September, has surged 67 percent this year, compared with a 9.9 percent gain for the benchmark.
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