Sporting goods brand dealers are launching a big competition in Hongkong.

Following the announcement of XTEP, China's leading sporting goods retailer, to be listed on the HKEx in June 3rd, Yuyuan Industrial (Group) Co., the world's largest brand sport shoe maker, said yesterday that the company's plan to divestiture retail business through the Hongkong IPO (initial public offering) has been approved by shareholders.

It is understood that Baosheng international plan of Yuyuan group's wholly-owned Affiliated Companies, through Hongkong IPO financing not more than 396 million U.S. dollars.

Baosheng international plans to issue 823 million 400 thousand new shares, which account for 27% of the total share capital, and the issuing price range is HK $2.93-3.75. The company aims to list in Hongkong stock exchange in June 6th.

Yu Yuan distributes products for several international and mainland sports shoes brands in mainland China, including Nike, Adidas, Lining, Kappa, Converse, Reebok and so on.

Baosheng international operates YYSports sporting goods retail business in the mainland.

According to the survey commissioned by Baosheng international, as of last year, it was the largest retailer of Adidas and Lining brands and the second largest retailer of Nike.

In addition, the company is also the largest retailer of brands such as Kappa and PUMA.

Some analysts believe that from the performance of Anta listed in Hong Kong, investors are very popular with such mainland retail stocks.

Baosheng international is split from Yuyuan group, and Yuyuan is a Taiwanese capital listed company with better brand image in Hongkong market, so this will give Baosheng international IPO a lot more points in Hong Kong.