Li & Fung will be delisted from the Hong Kong Stock Exchange after Friday, May 15. The Chinese sourcing giant has been trading there publicly since 1973. Shareholder endorsed a proposal to allow the founding family to take the company private, with only 2.85 percent of the votes cast against it. A statement issued by the company indicated that its goal is still to “create the supply chain of the future,” in line with a three-year plan announced two years ago. It added that this “remains more relevant than ever with the digital disruption to retail and the ongoing uncertainties of the US-China trade war, compounded by the dramatic impact of Covid-19 on retail supply chains.” Li & Fung was already taken out of Hong Kong’s Hang Seng Index at the beginning of 2017, due to falling sales and earnings. Its market capitalization increased by about 20 percent in the past month and is now at a level of 10.59 billion Hong Kong dollars (€1.3bn-£1.4bn).

Topics