China'S Local Brand Is Fighting A Beautiful Battle.

US media said that under the ups and downs of the trade war, the Chinese national brand took advantage of the situation and made the empty end lose all.

According to Bloomberg reported on November 4th, Lining has risen more than 220% this year, ranking second in the MSCI China Index, the highest level in 9 years, and another local sports brand Anta sports has doubled this year, and its share price hit a record high since 2007.

Reported that, as these Chinese national brand share prices continue to rise, short camp hanging white flag. According to IHS's data, Lining's share of free circulation shares reached a two-year high of 2.61% in June, and has dropped to 0.26% at the lowest level in history. Anta sports is also similar. The short selling ratio has reached 3.7% in July, and now it has dropped to 0.38%.

The report noted that Lining and other Chinese national brands are trying to combine traditional Chinese and Western elements to change their traditional image and increase sales. Lining's official public is known to release new products in Paris fashion week. In Tmall flagship store, there are many products marked "New York Fashion Week" in the same fashion. Among them, the "Chinese Lining" sweater is priced at 699 yuan.

"Domestic consumption is also concerned about the momentum of brand revival. At the same time, under the current international political environment, national cards are also more popular among domestic consumers." Lv Haojiang, research director of the international consumer securities industry, said.

Sophie Wu, 25, moved to China from China 15 years ago. After returning to China this year, she said she was amazed at changes in the national brands such as Lining. "Now they represent national pride." She told Bloomberg.

Along with the "national tide", China's policy support for the sports industry has also made investors such as Lining and Anta win the favor of investors. In the third quarter of this year, Lining's same store sales recorded a 10%-20% growth year by year, and Anta's brand retail sales grew by a year-on-year increase of 10%-20%. Bloomberg data show that analysts predict that Lining's GAAP net profit in the 2019 fiscal year rose by 93%, and that in 2020 and 2021, there were more than 20% forecast growth. Anta's annual growth forecast for 2019-2022 years is also over 20%.

After the surge in share prices, valuations also rose. Lining predicted that the ratio of earnings to earnings is 36 times, which is more than 60% higher than the three-year average cost to earnings ratio, and Anta sports forecast that the ratio of earnings to earnings is 27 times higher than that of the three-year average 21 times.