HPA-China Commentary on the below article:
Although the government’s plan is focused on sports and exercise, it certainly will pave the way for the sports nutrition and the overall healthy food sector. Regulations will remain the major factor as an obstacle to reaching consumers. Until regulations move forward, cross border e-commerce will be the main channel for international dietary supplement brands to enter China.
China’s A share market listed stocks in sports sector witnessed sharp price rise on Wednesday following the latest issued national exercise appealing plan by the State Council on Tuesday.
At the open of trading on Wednesday morning, various sports related shares including Impulse (Qingdao) Health Tech Co, Shuhua Sports Co and Shanghai Lisheng Racing Co all saw sharp increases and quickly hit their daily upper limit of 10 percent.
The State Council issued a national exercise plan from 2021 to 2025, to ensure the population’s fitness and exercise demands. The plan vowed to increase the number of people who often participate in regular exercise by 38.5 percent and expanding the scale of nationwide sports industry to 5 trillion yuan ($773.69 billion) by 2025.
China’s sports industry was worth approximately 2.95 trillion yuan in 2019, a 10.9 percent increase over 2018. The sports related service sector has great development potential with added value of 761.5 billion yuan, taking 67.7 percent of industry scale in 2018, according to media reports. Analysis firms estimated that China’s sports industry scale may exceed 3.5 trillion yuan by 2021. (Source: globaltimes.cn)