Li Ning – flagging strategy

Li Ning's (2331:HKG) attempts to mould itself as a direct contender to foreign players Nike (NKE:NYSE) and Adidas (ADS:BER) are yet to show through in results. Revenues were down 5% YoY in 1H11 and same-store sales growth in 3Q11 showed low single-digit growth as loyal customers were lost when it hiked prices, the company admits. Further, a decision to buy back mounting inventory among distributors has been significantly hurting profits. We expect sales growth to remain in the single digits in 2H11.

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• Financial China

  Selected financial charts

• Macro View

  QE, Chinese style

• Rural China

  Rural boom moderates

  First Tractor – climbing the technology ladder

• The Best of Chinese Commentators

  Ministry of Health under fire over food safety, again

  Regulators toughen up on ChiNext

• Consumer China

  Domestic sportswear brands stumble

  361 Degrees – tapping hinterland dynamism

  Anta – keeping up with the pace

  China Dongxiang – losing traction

• Capital Intensive China

  Discounting buoys property sales in some cities

• The Big Call

  Labour wages start to ease

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