Customs duties or not, Chinese markets are still waiting for a profits, underline analysts. “Whatever the amount of customs duties imposed on China, this comes back to the interior of China and the question of whether China can alleviate deflationary pressures,” said Aaron Costello, head of the ‘ Asia at Cambridge Associates. Beijing “has clearly shown its desire” to stimulate the economy, said Costello, stating that details should be made public during an annual parliamentary meeting in March. “The potential of a net rebound in Chinese actions exists, which is why we do not want to underline China, we want to be neutral,” he said. Chinese shares closed up on Friday after the latest comments from US President Donald Trump indicated his reluctance to increase customs duties, although he threatened more than 10 % customs duties could be imposed From February 1. The continental market also benefited from a boost Thursday after financial regulators have indeed mandated insurers supported by the State to buy more actions. Even if the directive offers a longer -term support for actions, “we reiterate our preference for the A equity market A and for actions offering stable cash yards and decent dividend yields,” said Laura Wang, Stratege on Thursday In chief of the actions in China at Morgan Stanley, in a note. She referred to the January 20 report of the cabinet for a list of “well -positioned” names. Morgan Stanley interviewed his analysts about Chinese actions for which they expect solid growth in profits during the coming year. The shares must be over -managed or equals, have a market capitalization of more than $ 2 billion and an average daily turnover of more than $ 2 million. The three names whose growth in the expected profits are the highest for 2025 are: Espressive Systems – The company listed in Shanghai develops flea games for household appliances. Earlier this month, it announced that its net profit had more than doubled in 2024. SICC-founded in 2010, the company listed in Shanghai produces substrates in silicon carbide, used in semiconductors. In December, she announced her intention to be listed in Hong Kong on an unclear date. Zijin Mining – The mining company listed in Hong Kong, which extracts metals such as copper, gold, zinc and lithium, said that its net profit in the third quarter had increased by more than 50 % compared to the ‘last year. Morgan Stanley expects that each company can increase its profit per share by at least 40 % in 2025. “Quality benefits are more effective than becoming an alpha generator experienced in the Chinese shares sector And should continue to be, “said analysts in the January 20 report. They declared that Chinese shares have missed the expectations in terms of profits for 13 consecutive quarters since the end of 2021. But in their historical analysis of stock market performance between 2021 and 2024, they found that the profits greater than expectations and revisions to the increase led to significant outperformance compared to companies that have failed or saw their estimates of reduced profits. . Revenues abroad is increasingly becoming a growth engine for Chinese companies, faced with a slowdown in the national economy. And despite geopolitical concerns affecting cross-border electronic commerce, Bernstein analysts stressed in a note published on Wednesday that the market outside the United States is “as large, if not larger, as that of the United States”. The total gross value of electronic commerce in the United States was $ 1,100 billion in 2023, while the following 29 markets for which Emarketer had a total GMV of $ 1,500 billion, said Bernstein. Bernstein analysts expect the benefits of PDD and Alibaba to increase during the coming year, but the only one they consider to outperform is the mother company TEMU. They have a price target of $ 150 per share on PDD, an increase of more than 40 % compared to the end of Thursday. “From an investment point of view, we have the feeling that global (and in particular American) investors have a very focused vision on TEMU and what it means for PDD actions,” analysts said. “On the other hand, we would say that Temu’s experience in the United States in the last 12 to 18 months-showing a strong increase in profitability once the acquisition of new users has been neglected-demonstrates the way to profitability elsewhere. “” – Michael Bloom of CNBC contributed to this report.
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