The Swiss Association for the Development of Good Cotton (BCI) issued a statement last October about forced labor in Xinjiang, and H&M, a member, made a similar statement last year that it did not use cotton from Xinjiang. The statement was recently rehashed by the Chinese Communist Party, which prompted a boycott of foreign clothing brands.
Since March 24 of this year, the EU-27, the United States, the United Kingdom, Canada, Australia, New Zealand, and Japan have all imposed sanctions or condemned a number of Chinese Communist Party officials and entities. In this situation, the CCP eagerly moved the goalposts for itself by launching a xenophobic boycott campaign against foreign goods.
CCP officials first named H&M and encouraged a popular boycott. The incident then spread to include international brands such as Burberry, Adidas, Nike, New Balance, Uniqlo and Muji.
Under the incitement of the Chinese Communist Party, a number of mainland clothing brands have taken a stand in support of Xinjiang cotton, including sportswear brand Li Ning issued a statement saying that it did not join the Swiss BCI organization, stressing that Xinjiang is an important source of raw materials in Li Ning’s supply chain system. The company also said that it has been purchasing and using cotton from China’s cotton producing areas, including Xinjiang cotton, and will continue to purchase and use it in the future. “361 degrees” and “Tebu” also indicated that they would continue to use Xinjiang cotton.
As international brands are blocked, domestic sports brands turned into “Xinjiang cotton concept stocks” rose. Li Ning 25 against the market rose sharply 10.74%; Anta rose 8.4%; TBU (1368) had hit a new 52-week high, finally rose 2.72%.
According to combing, the mainland has dozens of domestic brands have publicly voiced support for Xinjiang cotton, involving apparel, daily necessities and other fields. Domestic textile and apparel sector also rose against the market, by the fermentation of the Xinjiang cotton incident, clothing and textile concept stocks more than 25 shares rose, A shares, the new race shares, Mebane apparel, Risheng fashion stopped, seven wolves, Senma apparel, Hailan House, etc. have risen.
Hong Kong stocks of sporting goods stocks also synchronized high, Anta sports intraday rose nearly 10%.
At the same Time, as the largest distributor of Nike and Adidas in China, Toubo’s shares plunged 12.36%, the largest one-day drop since its listing, and Nike supplier Shenzhou International sank 4.1%.
However, the northern water took advantage of the rapid rise of Anta and Li Ning to cash out, the two shares through the “Hong Kong Stock Exchange” were 21.299 million yuan and 78.858 million yuan of net outflow.
H&M and Adidas shares listed in Europe closed 1.8% and 6.1% lower, respectively; the U.S. stock market closed, Nike shares fell 3.39%, once slipped 5.79% during the day.
Although the stock is expected to continue to fluctuate in the short term, it has a 70% to 80% chance of rising in the next 30 days.
It is worth noting that dozens of celebrities have issued statements for fear of losing the Chinese market and urgently cutting ties with brands under the overwhelming public opinion offensive of the Chinese Communist Party. But there are artists who are not complicit. Hong Kong star Chapman To posted a mockery of the Communist Party’s retaliatory boycott of foreign goods. He wrote in a Facebook photo of his shoes, “I wear Nike and I’m proud!” . At the end, he said, “I’ll see what kind of sneakers you wear on the street in the future!”
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