Vitasoy International Holdings Limited (“Vitasoy”) (HKG:0345)’s stock has taken a beating this year. Its shares have plunged more than 35% year-to-date, as the company is under threat in its most important market, Mainland China, where it derives two-thirds of its revenue. Here are 3 reasons why Vitasoy’ share price is falling. 1. Consumer boycotts Vitasoy triggered a strong boycott against its liquid beverages in early July after an internal memo expressing condolences to the family of an employee who stabbed a police officer and then killed himself got circulated online. The memo angered netizens who criticised the company for indirectly condoning violence and terrorist acts. Hong Kong authorities classified the episode as a “lone-wolf” attack, saying a computer they seized from his home showed that he had been “radicalised”. Police did not however provide further details about his alleged radicalisation. Nevertheless, the incident occurred on a tense day for the city, as it marked the first...