In the spirit of the Olympics, here's some good regulatory news. The State Council unveiled a National Fitness Program (2021-2025) to promote a higher level of national fitness development and to better meet people's fitness and health needs. Specifically, the program would like the proportion of people who regularly participate in physical exercise to reach 38.5% with 2.16 social sports instructors per 1,000 people. The scale of the national sports industry could reach 5 trillion RMB.
Sportswear companies, Li Ning (2331HK) , Anta (2020.HK) and 361 Degrees (1361.HK), are soaring in HK trading. In addition, I mentioned before that Li Ning and Anta has other tailwinds as well such as receiving the support from top Chinese influencers (KOLs) and benefiting from a revitalization of domestic brand demand.
Key parts of he Program:
1) Increase number of national fitness venues; build > 2000 sports parks, national fitness centers, public staidums etc
2) Extensively carry out national fitness events
3) Use of science as guidance for fitness - implement system of national physique monitoring
4) Stimluate sports social organizations
5) Promote development of fitness activities for key groups - aimed at young people's myopia and obesity problems
6) Promote high-quality development of sports industry - cultivate a number of "specialized and new“ SMEs
7) Ensure students have 1 hour of sports activities on-campus and off-campus every day; integrate all kinds of youth sports
8) Promote integration of sports and travel and promote sports tourism
