China marked another milestone in its departure from zero-Covid this weekend as it reopened sea and land crossings with Hong Kong and ended quarantine requirements for inbound travelers . Beijing's sudden and rapid dismantling of its stringent Covid-19 controls after nearly three years has raised hopes that its battered economy could follow a similarly rapid pace of recovery — and that has gotten many analysts excited.
and Credit Suisse have forecast growth of 5% and 4.5%, respectively. Meanwhile, UBS says Chinese stocks look increasingly attractive. "We have upgraded Chinese equities to Most Preferred within our Asia asset class preference, on the back of a faster-than-anticipated reopening, continuous domestic policy support, and stronger earnings growth compared to other markets within Asia ex-Japan," UBS analyst Eva Lee wrote in Jan. 5 note.
noted in a Jan. 6 note that Asian hotel and airline stocks such as Cathay Pacific , Hong Kong conglomerate Swire Pacific and Singapore's CDL Hospitality REIT have already climbed higher in the wake of China's reopening but could continue to rally. Less obvious picks The banks also pointed to several less obvious beneficiaries.
's list of "less obvious beneficiaries" includes stocks in the tech and automotive sectors, such as Chinese battery manufacturer Contemporary Amperex Technology and autos component maker Ningbo Joyson Electronic . Global stocks The analysts also say there are opportunities beyond Chinese and Asian equities. Bank of Americas and Morgan Stanley both named U.S. luggage retailer Samsonite as a beneficiary stock.
seemacnbc Fund managers should focus on underlying fundamentals of companies instead of solely betting on specific countries. The U.S. has a proven track record of successful capitalism and investment opportunities.
Any new developments on this?
'Reopening' Lol
The pros as in the democrats?