J.P. Morgan China Sportswear: Robust Chinese New Year Consumption; Anta Remains Top Pick
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
J.P. Morgan hosted an expert call on February 27, 2026, highlighting a strong start to the year for the China sportswear sector. Industry retail sales grew approximately 15% year-over-year in January and February, marking the best Chinese New Year performance since the pandemic. This was driven by improved conversion rates, better average selling prices, and robust outlet store sales. However, cross-purchasing rates declined slightly due to shifting consumer behaviors.
The report reaffirms the sector's experiential growth drivers, including health-conscious trends and policy support. Despite intensifying competition, J.P. Morgan expects leading brands to capitalize on major sporting events in 2026, such as the Winter Olympics and the World Cup. Running and outdoor categories continue to offer the most significant growth potential, while athleisure and basketball remain relatively conservative bets.
J.P. Morgan reiterates Anta Sports (2020.HK) as its top pick, citing its well-executed multi-brand portfolio and superior overseas expansion potential. Core Anta brand retail sales surged roughly 20% year-over-year, significantly outpacing peers. The bank projects Anta's earnings will grow over 10% in 2026. Meanwhile, Li Ning (2331.HK) saw a 10% sales increase against tough comparisons.
Anta Sports is rated Overweight with a closing price of HK$85.05 on February 27, 2026. The report did not specify a target price. Li Ning remains Underweight.