Shares in Li Ning benefit from cauldron-lighting dividend

Shares in Li Ning rose nearly 6 per cent yesterday, three days after its chairman, a former gymnastics star, lit the cauldron at the opening ceremony of the Olympic Games.

The mainland's top sportswear maker saw its stock jump as high as 5.9 per cent to HK$18.66 in morning trade, marking its biggest gain since July 24. That narrowed to 3.52 per cent later in the day, and the share closed at HK$18.24 amid a decline in the overall market. The Hang Seng Index slipped 25.87 points yesterday, extending its losses to 5,953.3 points, or 21.41 per cent, this year.

'[Company chief] Li Ning lighting the cauldron definitely gave a boost to his company's share price,' said Francis Lun Sheung-nim, general manager of Fulbright Securities.

Castor Pang, a strategist with Sun Hung Kai Financial, said the stunt could keep Li Ning's shares up in the next few days. 'But the company's upcoming interim results would be more critical.'

Adidas chief communication officer Jan Runau, who is in Beijing watching the Olympics, refused to comment on Li Ning's share rise - but he was keen to point out that more than 3,000 athletes were wearing sportswear made by the German firm, including Chinese stars.

'It is not our policy to discuss shares of other companies. But Li Ning is an icon in China and it is only right that he had an amazing part in the Olympics,' he said.