China - Market Strategy 05 (Jan 23 - Jun 24)

[winston]

A trader’s guide to Chinese stocks in focus as Yellen visits

By Sangmi Cha & Ishika Mookerjee

Janet Yellen’s mission to address the threat of cheap Chinese exports is set to increase pressure on the nation’s makers of solar panels, electric cars and batteries.

Source: Bloomberg

https://theedgemalaysia.com/node/707176

[winston]

<Research>HSBC Global Research Lists 'Bottom-up' Stock Ideas in CN Offshore Mkt (Table)

HSBC Global Research released its strategy report on China offshore market.

As fundamentals and investor confidence began to pick up, the rebound in China's offshore market was expected to persist.

The broker focused on four major investment themes, including AI exposure, revisiting yield stocks, overseas expansion and SOE surprises.

The report listed HSBC’s 12 bottom-up stock ideas in the China offshore market.

“Bottom-up” Recommended CN Stocks│Ratings │TPs

Related News: JPM Foresees AIA (01299.HK)'s 1Q24 NBV to Grow 19%, Rating Overweight

CHINA MOBILE (00941.HK) -0.900 (-1.310%) Short selling $140.67M; Ratio 12.855% │Buy│$77
MEITUAN-W (03690.HK) -1.300 (-1.244%) Short selling $963.22M; Ratio 30.884% │Buy│$165
SANDS CHINA LTD (01928.HK) -0.250 (-1.119%) Short selling $71.17M; Ratio 31.265% │Buy│$33
GALAXY ENT (00027.HK) -0.500 (-1.232%) Short selling $114.98M; Ratio 36.739% │Buy│$51
CCB (00939.HK) -0.060 (-1.227%) Short selling $243.57M; Ratio 21.217% │Buy│$6.1
AIA (01299.HK) -2.350 (-4.554%) Short selling $285.61M; Ratio 11.803% │Buy│$100
ICBC (01398.HK) -0.050 (-1.229%) Short selling $234.57M; Ratio 29.230% │Buy│$4.7
WEICHAI POWER (02338.HK) 0.000 (0.000%) Short selling $31.88M; Ratio 9.874% │Buy│$20
XIAOMI-W (01810.HK) +0.400 (+2.488%) Short selling $226.25M; Ratio 15.014% │Buy│$21.8
CHINA RES LAND (01109.HK) -0.650 (-2.697%) Short selling $50.14M; Ratio 12.110% │Buy│$44.2
CKI HOLDINGS (01038.HK) -0.750 (-1.625%) Short selling $13.61M; Ratio 24.682% │Buy│$55
HUANENG POWER (00902.HK) +0.090 (+1.708%) Short selling $89.91M; Ratio 16.693% │Buy│$5.9

-------------------------

“Bottom-up” Recommended CN Stocks│2024E Div. Yield│2023-25E EPS CAGR

CHINA MOBILE│8.1%│14%
MEITUAN-W│0%│47%
SANDS CHINA LTD│2%│66%
GALAXY ENT│1.7%│31%
CCB│8.8%│0%
AIA│3.4%│40%
ICBC│8.1％│0％
WEICHAI POWER│4.2%│25%
XIAOMI-W│0%│4%
CHINA RES LAND│6.9%│6%
CKI HOLDINGS│5.6%│12%
HUANENG POWER│10%│40%

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

Chunlan, Sanfer, Other Home Appliance Makers Soar as China Says It Will Subsidize Trade-Ins
https://www.yicaiglobal.com/news/chunla ... -trade-ins

[winston]

China stocks gain as securities regulator clarifies concerns over delisting rules

HONG KONG: Chinese stocks rose on Wednesday, as the nation's top securities regulator clarified the new delisting rules to calm the market panic following a sell-off in small-cap shares. Hong Kong stocks edged down.

The China Securities Regulatory Commission (CSRC) said late Tuesday that tighter rules would not spark a wave of delistings.

The regulator also refuted the view that latest delisting rules would hit small caps, saying that only about 30 companies would be delisted next year under the new regulation.

China's small-cap CSI 2000 INDEX surged 5.5% by midday to lead the gains.

Meanwhile, UBS upgraded 2024 real GDP growth forecast to 4.9% from 4.6% on Wednesday, due to the better first quarter economic data and stronger export outlook.

Source: Reuters

https://www.thestar.com.my/business/bus ... ting-rules

[winston]

Trading the dragon: Chinese stocks are ‘second-half story’ for Deutsche while Lombard Odier sees safer bets in proxies

‘China is very much a second-half of the year story for us,’ says Stefanie Holtze-Jen, Asia-Pacific CIO at Deutsche Bank Wealth Management

‘Our clients would be looking at [China’s] underperformance relative to global markets as being a little concerning,’ Lombard Odier says

by Jiaxing Li

Source: SCMP

https://www.scmp.com/business/markets/a ... 59369&tc=9

[winston]

Serious investors need China exposure, should ‘forget about the short-term pain’, asset managers say

A lot of people fail to understand the prudent mindset of Chinese consumers, Pimco asset manager says

‘Having no China [exposure] is, I think, a mistake,’ says Amundi asset manager

by Aileen Chuang and Mia Castagnone

Source: SCMP

https://www.scmp.com/business/markets/a ... 9359&tc=15

[winston]

China’s middle class a ‘tidal wave’ investors are failing to appreciate: Primavera Capital founder

It is only a matter of time before the currently depressed market stages a rebound, according to Fred Hu

When investors become convinced that stimulus efforts are real, not just lip service, they will jump back in ‘big time’, he says

by Jiaxing Li and Aileen Chuang

Source: SCMP

https://www.scmp.com/business/markets/a ... 59499&tc=5

[winston]

China unveiled new measures to expand Stock Connect

CSRC announced that it will expand the scope of Stock Connect by relaxing criteria of eligible ETF, adding RMB Counters and including qualified REITs.

CSRC also voiced support for mainland companies seeking IPOs in HK.

Measures to encourage incremental southbound inflow to Hong Kong market.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... D635E963EB

[winston]

5 Reasons Chinese Equities Have Bottomed

by Andrew Rocco

1. Market Restructuring
2. Valuations are Dirt Cheap
3. Kitchen Sink Already Thrown at Chinese Equities
4. Billions in Buybacks
5. Price Action

Source: Zack's

https://www.zacks.com/commentary/226161 ... 425-FC03-A

[winston]

Global fund managers build ‘significant exposure’ to Chinese stocks in sentiment shift, HSBC says

Global emerging-markets funds have dialed back their underweight positions and turned neutral on China’s yuan-traded stock

Asian funds, those with mandates to invest in the region excluding Japan and Australia, have significantly raised mainland China allocations to a seven-month high

by Zhang Shidong

Source: SCMP

https://www.scmp.com/business/banking-f ... pe=section