Chinese language Sports activities Firms Soar on Mass Health Program

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From Yongchang Chin

Chinese sporting goods company stocks rose Wednesday after Beijing revealed details of a mass fitness program as part of its 14th five-year plan.

Hong Kong-listed Anta Sports Products Ltd. gained 5.4% to 183.20 Hong Kong dollars by lunch break, an increase of 49% since the start of the year. Li Ning Co. and Pou Sheng International Holdings Ltd. gained 8.4% and 3.8% respectively.

Chinese officials said late Tuesday that the country plans to expand its sports industry to a sector of 5 trillion yuan ($ 772.75 billion) and that it plans to open more than 2,000 sports venues, including sports parks, fitness centers, and sports centers by 2025 Stages, add or expand.

It also aims to increase the number of people who exercise regularly to 38.5% of the population, from 37.2% before the current plan began to address health issues such as obesity.

Chinese students are required to spend an hour a day in and out of school in sports activities and integrate their sports and tourism industries to increase the range of sports facilities and services.

The US bank Jefferies estimates that the goal of expanding the sports industry implies an average annual growth rate of 9.4%. It has buy ratings for Li Ning and Pou Sheng.

“We believe that Anta and Li Ning offer tremendous room for future growth,” said Lei Yang, Executive Director of China Research at China Galaxy International Financial Holdings Ltd.

Write to Yongchang Chin at yongchang.chin@wsj.com

Corrections & reinforcements

This point has been corrected at 0634 GMT to take into account that Chinese students have to spend an hour each day in and out of school doing sports. In the original version, the fifth paragraph incorrectly states that students have to spend an hour a day doing sports.

Chinese students have to spend one hour per day in and outside of school doing sports. “Chinese Sports Companies Jump on Mass Fitness Program,” at 0444 GMT, incorrectly stated that students were required to spend an hour a day exercising.