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China Insight: Chinese Apparel Stocks Surge as Global Markets Tap Into Asset Revaluation Opportunities
Li Jun
5 min read
Boosted by a series of financial policy measures unveiled by the People’s Bank of China, the State Financial Regulatory Administration, and the China Securities Regulatory Commission (CSRC) in late September and the announcement by the People’s Bank of China to establish the Securities, Funds and Insurance Companies Swap Facility (SFISF), the country’s stock market showed strong signs of recovery in the golden months of September and October, with multiple indices setting record highs for the largest single-day gains.
The market has shifted from sporadic surges to the ignition of a “slow bull” scenario, backed by a combination of policy drivers, economic recovery, and technological advancements. From a policy perspective, Chinese listed companies in the textile and apparel sector could benefit from this round of revaluation of assets.
Despite negative returns for A-share apparel brands from January to August, a select few such as Bosideng and Semir achieved double-digit net profit growth in the third quarter. However, the manufacturing sector has outperformed brands, with overseas exports increasing faster in the third quarter compared to the second. Companies like Huali Group, Korrun Shares, Xin’ao Shares, and Yue Yuen Industrial Holdings are expected to see varying degrees of growth in both revenue and net profits.
Concurrently, cumulative online retail sales of clothing in China grew by 4.1 percent year-on-year from January to September, with retail sales growth showing a monthly improvement since July.
Ping An Securities’ research indicates that, driven by the recovery of discretionary consumption, companies in apparel manufacturing and exports are likely to encounter new opportunities. Furthermore, businesses that export clothing and home furnishings may continue to reap benefits, and apparel brands, after a revaluation adjustment, could also see market increases.
As capital market sectors shift and some fashion companies reap the benefits of a bull market, major fashion events — such as the recently wrapped Shanghai and Shenzhen fashion weeks and the upcoming Global Apparel Conference in Humen, Dongguan, scheduled for Nov. 20 to 22 — are not only boosting market confidence but also demonstrating the determination of Chinese fashion industry to connect with the global market.
International Brands Remain Confident
October saw strong participation from fashion weeks in Shanghai and Shenzhen.
In Shanghai, Vivienne Westwood made a comeback at Shanghai Fashion Week with its spring 2025 collection, with tickets for the finale show hard to get, and scalper prices soaring to 3,500 yuan, or almost $500. Following that, Moncler’s “The City of Genius” took over the former World Expo site, the CSSC Pavilion. Within its 10 distinct districts, it showcased the fusion of diverse worlds and cultures, mixing designers, style icons, musicians and more.
Shenzhen Fashion Week has entered its second decade.
Shenzhen Fashion Week, meanwhile, got a strong revamp and focused on professionalism, globalization, and commercialization by leveraging diverse resources to stage a series of events, including brand shows, exhibitions, forums, and order-placing meetings both online and offline. The continually updated digital ordering platform partnered with clusters of designers to conduct on-site brand order-placing meetings. At the same time, a weekend market attracted more than 300 designer brands from home and abroad, offering consumers a fashion shopping experience at favorable prices.
The Global Apparel Conference Invites Numerous Nations
Following the fashion weeks, the Global Apparel Conference organized by the China National Textile and Apparel Council (CNTAC) and undertaken by China National Garment Association (CNGA) and the China Textile Information Center (CTIC) is set to take place in Humen, Dongguan, Guangdong in late November. Official sources reveal that industry dignitaries from nearly 20 countries and regions, including France, Italy, the U.K., South Korea, Japan, Egypt, Malaysia, and Cambodia, have responded positively to invitations to the conference.
On Oct. 12, the Global Apparel Conference held a press conference to announce the 2024 annual conference, which will take place from Nov. 20 to 22 in Humen, Dongguan City, Guangdong Province.
Chen Dapeng, vice chairman of CNTAC and president of CNGA, sees the Global Apparel Conference as a dialogue platform for the world’s fashion industry that will further foster the integration of new industries, models, and dynamics. He noted that France is the guest of honor at this year’s conference, with several well-known designers expected to share their views on fashion trends.
In fact, the first Global Apparel Conference last year has already helped spark growth for Humen’s apparel industry. Xing Wenju, a standing committee member and deputy mayor of Dongguan City, stated, “Out of 12,000 textile, apparel, and footwear manufacturers in Dongguan, 1,200 large-scale enterprises have reached an industrial output value of over $13 billion, a nearly 10 percent increase year-over-year. Humen, known as a renowned town for garments and apparel, has established a massive industrial cluster, experiencing swift growth compared to the previous year.”
From Shanghai to Shenzhen, and now Humen, the global “presence” of China’s fashion industry is becoming increasingly prominent. As Sun Ruizhe, president of the CNTAC, put it, “China’s textile and apparel industry, as a pillar of the global supply chain, continues to integrate into global development with unwavering resolve and an open stance.”
On the one hand, strategic policy moves are being made at the top level, spurring a significant surge in the stock market and a flood of speculative capital, which fuels the industry with funds for R&D and market investment. The thriving secondary market not only helps stimulate consumer spending but also fires up market enthusiasm. On the other hand, the industry is welcoming foreign investment, teaming with global brands to explore growth opportunities.
Editor’s Note: China Insight is a monthly column from WWD’s sister publication WWD China analyzing developments in that all-important market.
