Sports stocks prices fall sharply in China

In recent weeks, the stock market in China has undergone a huge depression. Stocks of sports-related companies are constantly falling. During the past fifteen days, the share prices of Teda, Sainty, SIPG, Sungkiang, and Evergrande have all experienced sharp decreases.

Compared to the stock prices of June 15, today’s stock prices have plummeted. Teda's stock price plunged 50% with Sainty’s share price tumbling from 19.99 to 10.70. Meanwhile Evergrande, the real estate co-owners and sponsors of the 2013 Asian Champions Guangzhou, who recently listed on trading board, also underwent a huge loss with its stock price diving from 8.40 to 4.33.

It is believed that the sharp fall in China’s stock prices would dampen sponsors’ enthusiasm to invest in sport. Sponsors may however gradually change their investment strategy with, some experts pointing out that the slump in the stock markets might be beneficial for Chinese football. They said that some great European soccer giants have hit rock bottom but survived during economic depressions, and that Chinese sponsors should face challenges optimistically.

Source: sports.china

Proofread by Raymond Fitzpatrick