On the 21st, cosmetics-related stocks were collectively strong in early trading on expectations of spillover gains from China's "Hanil-ryeong (ban on Japan)."
As of 9:38 a.m. that day, BBIA shares were trading at 10,710 won, up 13.69% (1,290 won) from the previous session.
At the same time, COSMAX Inc. shares were also showing gains in the 3% range. Hankook Cosmetics was up in the 6% range, and Sunjin Beauty Science and MA:NYO were also up in the 3% range.
This is seen as the effect of projections that, as the Chinese government imposed the "Hanil-ryeong," China could also restrict imports of Japanese cosmetics.
Earlier, Japanese Prime Minister Sanae Takaichi's remarks about the possibility of "intervening in the event of a Taiwan contingency" rapidly chilled China-Japan relations. In retaliation, the Chinese government issued the so-called "Hanil-ryeong (ban on Japan)," including banning the screening of Japanese films in China.
Jo So-jeong, a Kiwoom Securities researcher, said, "If China's import restrictions materialize, research and development and production (ODM) firms are expected to benefit the most," adding, "Among ODMs, COSMAX stands to benefit the most."