Connect with us

Business

Investing in Chinese stocks amid coronaviruses and tensions with the United States


Chinese President Xi Jinping walks past officials wearing masks following the coronavirus disease epidemic (COVID-19) as he arrives for the closing session of the National People’s Congress (NPC) at the Grand Palace People’s Hall in Beijing, China on May 28, 2020.

Carlos Garcia Rawlins | Reuters

China has juggled a global pandemic and geopolitical tensions this year, clouding the prospects for those wishing to invest in the world’s second largest economy.

The country is trying to get back on its feet after essentially shutting down its economy to contain the coronavirus. The virus is also a key component of tensions between the United States and China, after Washington accused Beijing of hiding the full extent and origins of the epidemic.

Tensions between the two spread on many fronts, including the financial markets after the Senate passed a bill targeting Chinese companies listed in the United States. the special commercial status of the Asian financial center.

Despite these developments, there are still sectors of the market where investors can find opportunities. Here’s how investors should trade Chinese stocks amid these tensions, analysts said.

Focus on Chinese A shares

Investment bank Morgan Stanley recommends being overweight Chinese A stocks or stocks that trade on mainland indices. Valuations within these stocks have tended to decrease the least in response to US-China tensions said the investment bank.

“The A-share market also has a very limited representation of foreign ownership,” said Morgan Stanley. This represents only about 4% of the A-share market capitalization, compared to at least 35% for the MSCI China index, according to the report.

MSCI China has A shares in the index, but also includes H shares which are traded on the Hong Kong stock exchange as well as Chinese companies listed in the United States.

Be selective in the selection of Chinese companies listed in the United States

The Senate bill passed last month could essentially ban many Chinese companies from being listed on American stock exchanges.

This would require companies to certify that they are not owned or controlled by a foreign government and to subject them to audits by US regulatory authorities for three consecutive years. Companies would be banned from the stock exchanges if they did not meet any of these conditions.

Morgan Stanley has warned investors against companies with large foreign participation but which are not eligible for secondary listings in Hong Kong.

“They face greater uncertainty regarding de-listing due to the continued focus on … accounting / auditing compliance,” he wrote in a report last week.

Hong Kong has made it more attractive for companies listed elsewhere to have a secondary listing on its stock exchange. But there are certain criteria: for example, technology and innovation companies listed for at least two years on the New York Stock Exchange or on Nasdaq are eligible.

Analysts have predicted that the risk of delisting in the United States will cause many Chinese companies to flock to Hong Kong.

This will be positive for Hong Kong Exchanges and Clearing stocks, analysts at Citi Research said in a report last week. This could lead to a 10% increase in profits, analysts said in a note reiterating a “buy” note.

Increase exposure to consumer stocks

The Chinese economy was one of the first to reopen, lifting most of the restrictions and allowing residents to resume activities outside their homes. This normalization of social activities “remains on track,” said Morgan Stanley.

The bank has raised its rating for “equally weighted” consumer durables stocks, indicating that it expects these stocks to behave like its counterparts. The investment bank said it expects less downward pressure on profits in the consumer and service industries.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]

Advertisement
plus
Sports17 seconds ago

New PJHL boss is game for the return of hockey this fall, if green light given – North Delta Reporter

The new Pacific Junior Hockey League commissioner says he is confident that his teams will be able to play games...

Tech39 seconds ago

IBM: Google’s “new kind of open source organization” is not vendor neutral

IBM is dissatisfied with Google’s new Open Usage Commons (OUC) governance model, the organization that manages trademarks for Google’s top...

International1 min ago

Trump, López Obrador ask questions at the USMCA celebration

With the help of Gavin Bade Programming Notice: Our newspapers are evolving. The morning trade will continue to publish daily...

Entertainment1 min ago

Naked Attraction: viewers shocked by woman’s comment on “clotted cream”

Viewers were blown away last night when a woman on Channel 4’s Naked Attraction talked about putting clotted cream on...

Health2 mins ago

Cell-like decoys can wipe off human viruses, including those that cause COVID-19

Researchers around the world are working hard to develop a COVID-19 vaccine aimed at targeting and attacking the SARS-CoV-2 virus....

International4 mins ago

Chinese embassy accuses Australia of violating international law after visa extensions were announced in Hong Kong

The Chinese embassy has condemned Australia’s decision to extend the visas of some Hong Kongers in response to China’s crackdown...

Health5 mins ago

Five COVID Patients Discharged | News Extras

As the world continues to fight the new coronavirus, the World Health Organization (WHO) has reported 11,841,326 confirmed cases so...

Fashion6 mins ago

Red Dress Run 2020 canceled

The organizers still encourage people to donate to local charities that need support, but said there was no way to...

Entertainment7 mins ago

fraternity members, former colleagues remember Jagdeep

(Eds: Includes quotes from Rajkumar Santoshi, Prem Chopra and Ranjit) Mumbai, July 9 (PTI) Actor Jagdeeps Sholay, co-stars of Amitabh...

International7 mins ago

Truecaller was disappointed with the Indian Armys call to delete the app

Indian Army has directed soldiers and officers to hide Truecaller from their phones to avoid any threat to their privacy....