BBRYF - Luxury goods stocks trade lower on China fears

China's recent crackdown on businesses that do not support the country's goals may affect companies selling luxury goods in the country. Investors are worried that China's government will more aggressively push for social equality as the country is intervening in companies that could contribute to social divides and President Xi Jinping gave a speech Tuesday citing "common prosperity." A small group of wealthy individuals make up approximately 25% of China's luxury goods market. Higher taxes and party disapproval could weaken sales to China's elite class. According to Jeffries, China is expected to make up 45% of the global luxury goods market in 2021, up from 37% in 2019. After China banned luxury gift giving to civil servants in 2012, sales increased only 2% in the global luxury goods industry compared to over 10% in the previous three years, according to data from consulting firm Bain & Company. Stocks of luxury

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Luxury goods stocks trade lower on China fears