Italy’s Prada posted slim gains as it shares started trading in Hong Kong.
They were snapped up by investors who could not buy into the company’s initial public offering of shares.
The fashion house chose Hong Kong to list because China currently accounts for 27 percent of the global sales of luxury goods according to the World Luxury Association.
Ouyang Kun, the WLA’s Chief Representative in China said: “Italian luxury brands are experiencing their most robust growth in China compared with the rest of the world. Prada will encourage other luxury brands to list themselves on the stock market in China.”
Many other global brands are exploring options to list in Hong Kong and the performance of Prada’s shares will be critical in attracting such companies.
China is predicted to be the world’s biggest luxury market within five years, some analysts say sooner.
Prada itself has more a third of its over 300 directly operated stores, in the Asia-Pacific region.