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It may be named for one of China’s first Olympic champions, but leading sportswear maker Li Ning Co. Ltd. (2331.HK) was a loser last year, as its stock sank 21% in 2024, even as the broader Hang Seng Index rallied 17%. But strong government support for sports in China could put some spring back into its step, reflected by the company’s solid performance last year in its latest annual results released late last month.

China’s sportswear market has long been dominated by Li Ning and archrival Anta (2020.HK), each regularly trying to one-up the other as Chinese sports enthusiasts increasingly embrace domestic brands. Anta reported impressive results last year, including a 52.4% jump in its profit and 13.6% revenue gain.