Trivariate Research has listed some U.S. companies that could win big from China’s latest stimulus package. Last week, China’s central bank released a series of support measures to help stimulate economic growth and boost the struggling real estate market in the world’s second-largest economy. The measures include cutting banks’ need for cash on hand. “We believe that China’s stimulus measures have a progressive positive effect on risk-taking behavior,” Trivariate founder Adam Parker wrote in a note to clients. “We analyzed previous Chinese stimulus measures and present the results here, but Our judgment is to hold individual U.S. stocks that reacted strongly last week or are generally highly correlated with A-shares.” Parker noted that among China’s 11 stimulus trades since 2008, value stocks and large-cap stocks tended to perform best. and utilities were the better-performing industries, while energy and information technology were the worst-performing industries. Here are some stocks that could benefit this time: Trivariate Research sees commodity stocks Southern Copper and Freeport-McMoRan as potential winners from China’s stimulus deal, with their shares rising more than 37% and 17%, respectively, in 2024. Morgan Stanley recently added Freeport to its buy list of commodities stocks, viewing the company as a potential beneficiary. Gaming stocks could also do well on China’s stimulus package. That includes shares of resort and casino operator Las Vegas Sands, which are up just 2% so far this year. Estée Lauder shares should also benefit from positive news from China. Its shares have fallen by nearly a third in 2024 as the cosmetics maker grapples with lagging sales in the country. Roku, Capri Holdings, Yum China and MicroStrategy also made the list.
