HONG KONG, March 24 (Reuters) - Li Ning Co Ltd, China's best known sportswear company, posted its second straight year of losses in 2013, but the loss was narrower than the previous year, thanks to fewer retail discounts, better turnover of new products and faster inventory replenishment.

It posted a net loss attributable to equity holders of 391.5 million yuan ($63 million) for 2013, compared to a 1.98 billion yuan loss in the year ago period.

But that lagged a forecast for a 364 million yuan full-year loss, according to a Thomson Reuters' Starmine SmartEstimate.

Li Ning is backed by U.S. private equity firm TPG Capital and Singapore sovereign fund GIC. ($1 = 6.2250 Chinese Yuan) ($1 = 7.7588 Hong Kong Dollars) (Reporting by Donny Kwok; Editing by Edwina Gibbs)