The Big China Play That Fueled Luxury Stocks Is Now Fizzling Out
Chinese market has been one of the biggest for luxury sector
China retail sales in April fell short of forecasts.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
A Big Tech-like rush into luxury stocks is fast falling out of favor. China got the credit for driving the sector’s rally, and now the blame for the pullback.
Red flags that pricey luxury shares have hit a peak are piling up as conviction on the China reopening trade takes a hit. A slew of economic numbers point to a fading recovery, upending a trend that’s been central to making LVMH and Hermes International some of Europe’s favorite stock plays this year.