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Barclays: High-speed Growth of CN Economy Over, Recovery of Luxury Goods Mkt to Take at Least 3 yrs
Recommend 11 Positive 19 Negative 12 |
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Barclays issued a report after a visit to the Mainland, saying that it has become more cautious about the Chinese economy. It believed the high-growth phase of the Chinese economy is over, with the financial and property sectors coming under pressure and the private sector appearing to be shrinking. Barclays added that compared with six months ago, market sentiment is more cautious, and considered China's economic weakness to be a structural factor. Barclays therefore downgraded Adidas to Neutral, while also downgrading Burberry and Kering (parent of Gucci) to Underweight. Barclays believed it would take three to four years for China's luxury goods market to improve, so it chopped its forecast for growth in the sector next year from 7% to 4%. Barclays possessed a similar view on sporting goods stocks, commenting that most brands have reported weak physical shop traffic since 2Q, a trend that worsened over the summer according to channel surveys. While the online market was more active, it was largely driven by promotions. AAStocks Financial News |
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