TOKYO — Shares in companies doing business in China that had been bolstered by hopes of a post-zero-COVID boom in the world’s second-largest economy are slumping on weak economic data that has brought these expectations into question.
Such consumer stocks as Burberry, which generates more than 20% of its revenue in China, and France’s Groupe SEB — maker of Tefal cookware, a well-known brand in China — have been hit hard. Both shed more than 10% of their value in May after gaining more than 30% in the first four months of the year. Shiseido fell nearly 7% for the month after rising 5% between January and April.
