3 Names Hurt by Slower China Demand in Q3

The companies include sportswear, cosmetic and beverage brands.

Kate Lin, CAIA 17 November, 2021 | 11:23
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The mainland’s rising middle-income group is deemed a powerhouse of global consumer products. In recent years, equity investors have kept an eye on the premiumization trend in China, which is that consumers pay more for higher-end products. In recent times, a slew of factors have cast doubts on the promising growth. The government has vowed to bring in social equity, and in this pursuit have reset rules operating some of the most profitable businesses in the country. Some luxury brands are likely to feel a blow to their sales. In the mass market, Morningstar analysts find that the China businesses of these three foreign names are being challenged for different reasons.

Adidas (ADDYY)

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
adidas AG ADR144.60 USD0.38Rating
Shiseido Co Ltd6,446.00 JPY-0.88Rating
Shiseido Co Ltd ADR57.40 USD-2.58
Yakult Honsha Co Ltd5,610.00 JPY-1.06Rating
Yakult Honsha Co Ltd ADR24.55 USD-1.86

About Author

Kate Lin, CAIA

Kate Lin, CAIA  is a Data Journalist for Morningstar Asia, and is based in Hong Kong

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