LVMH, Hermès, Kering: the luxury sector continues to collapse on the stock market
© Reuters.
Investing.com - After closing down more than 5% yesterday, the LVMH action (PA: LVMH), which is a component of the CAC 40, plunges again in similar proportions this Thursday.
This fall comes within the framework of a generalized decline in the luxury sector, Keringsa (PA: PRTP) having lost 3.55% yesterday, and losing more than 6% this Thursday, while Hermès (PA: HRMS), which fell fromAlmost 4% yesterday, also fell back by 4% today.
At the origin of this collapse of the actions of the luxury sector, there are concerns with regard to Chinese demand, one of the main outlets of these brands in overpriced items.
Chinese President Xi Jinping insisted Tuesday on the need to promote moderate wealth for all - or the idea of "common prosperity", which, according to analysts, is at the origin of the latest regulatory measures taken at theContrary to technological companies.
The meeting called for "reasonable adjustment of excessive income and to encourage high -income groups and businesses to go to society more," said state media in Chinese.
To summarize, this suggests that the number of rich and ultra -recorded Chinese people, which can afford articles from luxury brands, decreases, in fact reducing the outlets of luxury brands.
However, the Chinese government's statements remain vague, and no concrete measure has been announced.
As such, the current dive of the actions of the luxury sector could constitute an excellent opportunity to buy LVMH, Kering or Hermès.
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