(Bloomberg) -- Shares of Chinese sportswear makers climbed as investors bet that Beijing's Winter Olympics will help spur demand amid the government's recent drive to increase health awareness.
Anta Sports Products Ltd., which is supplying uniforms for athletes in the games, rose as much as 5.2% ahead of the opening ceremony at 8 p.m. local time Friday. Li Ning Co., founded by a medal-winning Olympic gymnast, jumped 6.8% as Hong Kong stocks climbed following Lunar New Year holidays.
Winter Olympics Opening Gives China a Chance to Spin Its Image
Sports-related stocks surged last summer on a national boycott of foreign brands avoiding Xinjiang cotton due to concerns about Uyghur human rights. Coronavirus flareups, rising cotton prices and the slowing Chinese economy have since taken a toll, but expectations for the Olympics and Beijing's drive to get people to exercise more have been seen as demand drivers.
Among other stock that gained Friday, Xtep International Holdings Ltd. advanced as much as 6.3%. Sports retailer Topsports International Holdings Ltd. added 4.7%.
“The surge in visibility of these Chinese brands, particularly Anta, should bode well for sentiment on these stocks through the Beijing Winter Olympics,” said Bloomberg Intelligence analyst Catherine Lim. Rising health awareness could create new sales opportunities into 2023 for sportswear companies, Lim wrote in a note dated January 27.
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