BreakingviewsAnta bets Chinese shopping nationalism wonât last
Yawen Chen
4 minutes read
Nikeâs (NKE.N) Chinese challenger has cashed out of a nationalist shopping spree early. The controlling shareholder of Anta Sports (2020.HK), a $46 billion sportswear maker, will pocket a whopping $1.5 billion in a rare share sale. The deal comes after Chinese consumers threatened boycotts of Western brands critical of Beijingâs Xinjiang policy, which was seen as benefiting Anta and local peers. Itâs smart timing by a struggling company.
The Ding family, which controls Anta International which in turn controls Anta Sports, have rarely cut stakes since the latter listed 14 years ago. Yet this time seems opportune. The move came a week after Anta reported sales of its branded products jumped as much as 45% in the first quarter. In March, state media called out companies from Nike to Adidas (ADSGn.DE) for publicly denying sourcing cotton from Xinjiang, a Muslim minority region where Western governments have accused Beijing of conducting ethnic cleansing â a claim the government denies. Anta's shares popped nearly 30% as nationalists rallied to local brands.