Alibaba-backed Baozun's shares rise on says starts running Gap's China operations, shares rise

Baozun

01/02/2023 04:48

** Hong Kong shares of Alibaba-backed brand e-commerce
solutions service provider Baozun Inc  9991.HK  surge as much as
6.4% to HK$20.05, snapping a two-day losing run
    ** Stock set for its biggest daily pct gain since Jan. 26,
tracking a 2.8% rise in the U.S.-listed stock  BZUN.O 
    ** Shanghai-based Baozun says it has completed purchase of
Gap Shanghai and starts running The Gap Inc's operations in
mainland China, Hong Kong and Macau from Feb. 1  urn:newsml:reuters.com:*:nTUA7G20ZZ
    ** Daiwa sees one-off restructuring costs post consolidation
given Gap China remain loss making, but expects Baozun to remain
profit making at the group level in 2023 and expects acquisition
of Gap Taiwan to be completed in mid-2023
    ** Last November, U.S. apparel retailer Gap Inc  GPS.N 
agreed to sell its Greater China businesses to Baozun in a
primary deal size of $40-50 mln, as headwinds persists for
global consumer brands in the world's No.2 economy  urn:newsml:reuters.com:*:nL4N324124
    ** Alibaba's Hong Kong shares  9988.HK  surges 1.9%
    ** Hang Seng Commerce & Industry Index  .HSNC  rises 1.2%
and Hang Seng Consumption Index  .HSCGSI  gains 0.7%
    ** Hang Seng Composite Index  .HSCI  climbs 0.5% and the
benchmark Hang Seng Index  .HSI  edges up 0.3%
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))