Belle Leads Retailers Higher in Hong Kong Ahead of China's Golden Week
Belle International Holdings Ltd., China’s largest retailer of women’s shoes, led Hong Kong-listed shoe and clothing companies higher as investors anticipated sales will increase during national holidays.
Belle, which was included in the Hang Seng Index earlier this month, rose 1.7 percent to HK$15.28 as of 3:38 p.m. in Hong Kong. It rose 5.6 percent earlier. Bossini International Holdings Ltd., a retailer of inexpensive casual clothing, jumped 11 percent to 89 Hong Kong cents, set for the highest close since February 2006.
“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 and Macau- related shares,” 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 Lilang Ltd., owner of China’s biggest men’s clothing brand, advanced 7.1 percent to HK$11.78, a record high.
Retail sales may also increase as China tries to encourage the population to spend more to help support the economy.
China needs to increase domestic consumption to survive in a global economic environment that is growing more challenging, Li Daokui, an adviser to the People’s Bank of China, said this week. The world’s second-largest economy grew 11.9 percent from a year earlier in the first quarter, the fastest pace in almost three years.
Other Hong Kong-listed retailers with links to China also advanced. Yue Yuen Industrial (Holdings) Ltd., the world’s largest supplier of branded athletic and casual shoes, rose 2.6 percent to HK$28.15. Joyce Boutique Holdings Ltd., a retailer of designer clothing, jumped 1.3 percent to 39 Hong Kong cents. China Dongxiang Group Co., owner of rights to the Kappa sportswear brand in China, gained 5 percent to HK$4.45.
Ajisen China Holdings Ltd. advanced 4.8 percent to HK$12.14 on expectations the holiday will also boost sales at the more than 450 outlets of the Japanese noodle-restaurant in mainland China.
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