[Alpha Biz= Paul Lee] As China intensifies its so-called “Korean-Japan Restriction” (한일령) on cultural exchanges with Japan, Japanese consumer-focused stocks with high exposure to Chinese sales are showing weakness.
Among them, Sanrio, the entertainment company famous for Hello Kitty and Kuromi, continues to experience a downtrend. Interestingly, some Korean investors trading on the Tokyo Stock Exchange (“일학개미”) are taking the opportunity to buy.
On December 19, Sanrio closed at ¥4,992, up 0.3% from the previous day. However, since the Chinese government announced the restriction on November 14, Sanrio’s stock has steadily declined. Compared to the day before the announcement, shares have dropped 16.6%. Following an initial sharp fall, the stock hovered around ¥5,500, but recently has fallen further below the ¥5,000 mark, showing little sign of recovery.
Sanrio’s vulnerability stems from its significant reliance on the Chinese market, which accounts for roughly 20% of its total revenue. Earlier, in August, the company had raised its 2025 fiscal year performance forecast, causing its stock to surge from ¥5,700 to ¥8,600.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
