Date
12 December 2017
Riots take a heavy toll on a Chinese-owned factory in Vietnam. Photo: Reuters
Riots take a heavy toll on a Chinese-owned factory in Vietnam. Photo: Reuters

Vietnam riots weigh on HK textile, footwear stocks

A storm of anti-Chinese protests in Vietnam has forced a slew of Hong Kong-listed manufacturers to temporarily shut down their plants, putting downward pressure on their shares, the Hong Kong Economic Journal reported Thursday.

These companies include Yue Yuen Industrial Holdings Ltd. (00551.HK), Texhong Textile Group Ltd. (02678.HK), Fittec International Group Ltd. (02662.HK), and Kingmaker Footwear Holdings Ltd. (01170.HK).

A Yue Yuen senior executive said its operations in Vietnam represent one-third of the group’s total capacity.

Texhong and Fittec suspended their shares Wednesday, reporting losses and damage at their plants from the rioters. The shares will resume trading Thursday.

Texhong said it expected its factories will resume operations shortly after the protests end, but Fittec has yet to tally the costs of the damage from fire and burglaries at its plants, the report said, citing stock exchange filings.

Kingmaker also halted output at its factory at Binh Duong, which accounts for one-third of the group’s total footwear production capacity, although no damage was reported.

Li & Fung Ltd. (0049.HK), for whom Vietnam is its second-largest sourcing base, said some suppliers have also put their businesses on hold because of the riots.

Fires also caused damage at textile factories run by the Marjorie Yang-controlled Esquel Group, according to Apple Daily Thursday. 

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VW/AC/SK

Freelance journalist

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