European clothing brand H&M, which operates a chain of stores in China, issued a statement last year saying it would not cooperate with Xinjiang factories and refused to use Xinjiang cotton. The statement was suddenly rehashed yesterday and sparked controversy on the mainland, with online sales platforms taking their products off the shelves and artists stopping their spokesperson roles. Benefiting from this political storm over Xinjiang cotton, the shares of Li Ning and Anta Sports, two major Chinese-owned sportswear brands listed in Hong Kong, rose sharply by more than 8% today.
According to a Central News Agency report today, a statement issued last year by H&M, a European clothing brand that operates a chain of stores in China, was suddenly unearthed on the 24th, setting off a wave of boycotts on the Chinese internet as a result. Some commentators said that they do not rule out more similar boycotts of related overseas clothing or sports brands, including NIKE, because it is rumored that NIKE also refused to use Xinjiang cotton.
Under the boycott of H&M, Li Ning and Anta International shares soared today, and turnover increased significantly, the former closed at HK$ 50 per share (about NT $ 180), up 4.8 yuan or 10.7%, the latter reported 121.3 yuan, up 9.4 yuan or 8.4%. Some market analysts said that H&M’s refusal to use Xinjiang cotton fiasco apparently catalyzed the patriotic sentiment of the mainland public, causing them to buy products from Chinese companies instead, thus stimulating the share price to soar.
According to the analysis, the rejection of the Xinjiang cotton storm is still fermenting, it is believed that will continue to push up the share prices of Li Ning and Anta International, while the mainland A-share Chinese clothing brands will also benefit.
In addition, the mainland A-share shares of similar companies generally rose 7% to 10%.
The Central News Agency said the incident originated from a statement issued by H&M in 2020, saying the company was concerned about reports and reports of forced labor and religious discrimination against ethnic minorities in Xinjiang, and that H&M does not cooperate with garment factories in Xinjiang, nor does it purchase local products and raw materials. The statement was suddenly unearthed on the 24th, which led to a wave of boycotts on the Chinese internet.