Surge in China’s top lingerie maker short-lived even with Victoria’s Secret ex-CEO on board

Shares of Chinese lingerie maker Cosmo Lady, which surged on Monday following the appointment of former Victoria’s Secret CEO Sharen Jester Turney as its chief strategic officer, could not sustain its momentum.

The shares closed 0.5 per cent lower in Hong Kong on Tuesday after jumping as much as 12 per cent in the previous session, after China’s top maker of intimate wear by market share, said Turney would oversee its operational issues including mergers and acquisitions as well as overseas expansion.

“Executive reshuffles could easily affect the share performance of mainland Chinese companies,” said Shen Meng, executive director with investment bank Chanson & Co. “But the changes are usually a flash in the pan, as a single senior executive cannot change the fundamentals of a company that easily.”

Zhou Ting, director with Fortune Character Institute, a Chinese consultancy that focuses on luxury lifestyle, said that since mainland companies have a unique corporate culture and work environment, Turney might not find it easy.

“Foreign executives often appear to be unaccustomed to [the inner workings of ] Chinese companies,” she said.