After the news of China's well -known sports brand Li Ning's purchase of Hong Kong property in Hong Kong, Li Ninggang's stock price fell 16%for a time, and this year's decline has exceeded 70%.
Li Ning Sunday (December 10) announced on the Hong Kong Stock Exchange in the evening that Li Ning will purchase a commercial building from Henderson Bay (S $ 380 million) for HK $ 2.208 billion (S $ 380 million).Li Ning's headquarters in Hong Kong.
The announcement was released the next day (11th). Li Ning fell more than 11%, and continued to fall during the session, a drop of 16%.Since this year, Li Ning's stock price has fallen by more than 70 %.
Bloomberg quoted Citi Bank analysts that, compared with special dividend or stock repurchase, real estate investment is a less ideal capital allocation, especially in Chinese sports brands in the channel de -inventory.During the process.
Analysts predict that there will be more negative emotions for Li Ning and Chinese sports brands in the short term.
Li Ning's purchase of Hong Kong properties caused the market negative emotions to be related to the Hong Kong property market this year.Hong Kong's house sales this year will set the lowest level in history, and house prices have fallen by more than 20%from 2021 to nearly seven years.
In the context of the slow consumption recovery, Chinese sports clothing stocks have also been in a downturn this year.After Li Ning reported that sales in the third quarter of this year, the US Investment Bank Morgan Stanley and Goldman Sachs Group both significantly lowered Li Ning's target prices.
The two other sports brands of China Anta and Tuber's stock price also fell more than 3%on Monday (11th).
