Will Birkin bags fall victim to China's 'common prosperity' push?

Investors hammer high-flying luxury stocks over fears of government crackdown

Following the Aug 17 announcement that China plans to prioritise “common prosperity for all”, €61.7 billion (S$98 billion), or almost 10 per cent, was shaved from the collective market value of LVMH, Hermes – the maker of Birkin bags (above), Kering, Richemont and Burberry. ST PHOTO: JOYCE FANG
New: Gift this subscriber-only story to your friends and family

(FINANCIAL TIMES) After targeting education companies and technology tycoons in a renewed interventionist push, will China come for the Birkin bags next?

The question has been worrying investors in the world's biggest luxury goods groups since President Xi Jinping signalled this month that China would "regulate excessively high incomes and encourage high-income groups and enterprises to return more to society".

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.