Winter Olympics Boost China’s Supplier Shares Despite Boycotts
China’s investors are not letting a growing diplomatic boycott dampen their optimism ahead of the Winter Olympics next month.
(Bloomberg) -- China’s investors are not letting a growing diplomatic boycott dampen their optimism ahead of Beijing’s Winter Olympics next month.
Shares of firms related to arena construction and heating-and-cooling systems have rallied in recent weeks, with Bingshan Refrigeration & Heat Transfer Technologies Co. surging the 10% limit for six straight days through Thursday.
Lander Sports Development Co., which provides materials delivery and warehousing services, is up nearly 60% in the past two weeks. Beijing North Star Co., which will provide supply-chain and lodging services during the event from Feb. 4 to Feb. 20, has risen more than 20% since mid-December.
The enthusiasm for Olympic-linked equities come despite boycotts from officials including the U.S. and Australia, which said they won’t send government representatives to the event in Beijing. China said this week it is prepared to host the Olympics, which will be “simple, safe and splendid”.
The nation, which is also dealing with a worsening Covid-19 outbreak in some parts, has advised citizens against traveling across long distances during the Lunar New Year, which spans the first days of the games.
President Xi Jinping on Tuesday visited some facilities, including the speed-skating oval, athletes’ village, media center a sports-training base, where he greeted some athletes, coaches and volunteers.
©2022 Bloomberg L.P.
With assistance from Bloomberg