News source from: http://blogs.forbes.com/russellflannery/2011/05/23/fashions-hot-in-china-milan-station-soars-on-hong-kong-stock-debut/
Shares in Milan Station, a retailer of second-hand bags for women in China, soared on its IPO in Hong Kong yesterday, as investors aimed to profit from growth in China's fashion industry.
Shares in the company closed up by HK$1.1, or 66%, to HK$2.77 yesterday. Demand for its shares was so strong that the company said this morning that an IPO over-allotment mechanism had been exercised, expanding its IPO size to 674.3 million shares from 650 million.
Domestic spending on luxury goods in China in the first three months of 2011 grew “in the range of 30-35%” from a year earlier, said Bruno Lannes, a partner at Bain & Co. in Shanghai., at a recent Shanghai seminar on China's luxury market.
That compares with an increase of 23% in domestic spending for all of 2010 to 68 billion yuan, or $10.5 billion, Lannes said. "The luxury industry in China is really accelerating," he said.
Foreign brands such as Tiffany, Coach and among others are all actively targeting the country's market.
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