By Jiahui HuangLi Ning's shares fell sharply as investors balked at the Chinese sportswear maker pan to buy a Hong Kong office building for HK$2.21 billion (US$283 million). The move comes after Li Ning missed third-quarter sales expectations and cut guidance for the full year amid rising competition from international brands. Given Li Ning's current restocking and brands such as Nike and Adidas gaining market share, "we expect more negative sentiments on Li Ning and Chinese sports brands in the short term," the analysts added. They added that Li Ning will likely need to deliver two or three more consecutive quarters of solid sales before "relieving most market concerns." Citi has a buy rating on Li Ning shares with a HK$35.50 target price.

Source: Wall Street Journal December 11, 2023 05:26 UTC