Belle International Holdings Ltd., China’s largest retailer of women’s shoes, led Hong Kong-listed shoe and clothing companies higher as investors speculated their sales will increase during national holidays.
Belle, which was included in the Hang Seng Index earlier this month, rose 0.8 percent to HK$15.14 at the 4 p.m. close in Hong Kong after surging as much as 5.6 percent earlier. Yue Yuen Industrial (Holdings) Ltd., which supplies Nike Inc. and Adidas AG as well as running stores in China, climbed to the highest since February 2007.
“Shares related to China’s tourism and consumer themes are in focus as the Mid-Autumn festival holiday and the upcoming Golden Week in China will likely benefit retailers,” said Steven Leung, director of institutional sales at UOB-Kay Hian Ltd. in Hong Kong.
The Golden Week holiday in China starts on the country’s National Day on Oct. 1 and runs to Oct. 7. The Mid-Autumn festival holiday begins today and runs through Sept. 26.
China Dongxiang Group Co., owner of rights to the Kappa sportswear brand in China, gained 5 percent to HK$4.45, the sharpest advance since May 27.
Retail sales may also increase as China tries to encourage the population to spend more.
China needs to increase domestic consumption to survive in a global economic environment that’s growing more challenging, Li Daokui, an adviser to the People’s Bank of China, said this week. The world’s second-largest economy expanded 10.3 percent in the second quarter after growing 11.9 percent in the three months ended March, the fastest pace in almost three years.
Other Hong Kong-listed retailers with links to China also advanced. Bossini International Holdings Ltd., a retailer of inexpensive casual clothing, jumped 11 percent to 89 Hong Kong cents, the highest since February 2006.
Joyce Boutique Holdings Ltd., a retailer of designer clothing, increased 2.6 percent to 39.5 Hong Kong cents. China Lilang Ltd., owner of China’s biggest men’s clothing brand, advanced 8.6 percent to a record HK$11.94.
Ajisen China Holdings Ltd. advanced 6.2 percent to HK$12.30 on expectations the holiday will also boost sales at its more than 450 Japanese noodle restaurants in mainland China, which excludes Hong Kong, Macau and Taiwan.
Yue Yuen, the world’s largest supplier of branded athletic and casual shoes, rose 3.3 percent to HK$28.35. Yue Yuen derived 20 percent of last year’s HK$38.9 billion sales from its retailing business.