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Belle Advances After Goldman Adds China Shoe Retailer to Conviction List

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.

Belle climbed 3.5 percent to close at HK$15 as of the 4 p.m. close of trading in Hong Kong. The advance, the biggest since Nov. 1, made Belle the biggest gainer on the benchmark Hang Seng Index.

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.

China, the world’s most populous nation, has had average monthly retail sales growth of 18.3 percent this year.

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.

To contact the reporter on this story: Hanny Wan in Hong Kong at

To contact the editor responsible for this story: Nick Gentle at

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