Record downgrades in China suggest more companies will lose investment-grade ratings as Premier Li Keqiang pares state intervention, according to Haitong Securities Co., the nation’s second-biggest brokerage.
Li Ning Co., the largest China- based sportswear company by revenue, posted its first annual deficit since listing in 2004, as slowing economic growth caused sales to fall a second year. The shares fell.
Li Ning Co. fell the most in 18 months after the Chinese sportswear company said it plans to raise as much as HK$1.87 billion ($241 million) offering convertible securities to fund efforts to revive its brand.
Li Ning Co. dropped the most in almost two months in Hong Kong trading after its founder sold a 25 percent direct stake in the sportswear retailer to Viva China Holdings Ltd., a company he partially controls.