Japan did it first. China’s stock market rises among the highest in the world | Wilnesh News
If the international expansion of Japanese companies is a reference, then Chinese companies still have huge potential in the global market. That’s what analysts at HSBC say. They found that for mainland Chinese listed companies (i.e. A-shares), only 11.7% of their total revenue came from overseas last year. If only the largest companies tracked by the CSI 300 Index are considered, the proportion is even lower, at 10.3%. Steven Sun, head of research at HSBC Qianhai Securities, and his team said in a report this month that by comparison, 35.3% of the revenue of Japan’s Nikkei 225 companies last year came from overseas. Since the outbreak, Chinese companies have increasingly looked to expand overseas as domestic growth slows. Electric vehicles and consumer products are on the radar of investment analysts for their international potential. UBS Asia-Pacific equity analyst Christine Peng and her team said in a report on China’s consumer industry released on June 12: “We believe that investors still underestimate the structural growth opportunities brought by the global expansion of consumer goods companies, especially is in emerging markets. Companies to Watch One of their buy-rated picks is Gongniu, a Shanghai-listed company that sells electrical products such as wall sockets, switches and lighting, which it said in its annual report. Gongniu has established subsidiaries in Indonesia and recruited distributors in the Middle East and South America. Gongniu’s overseas operating revenue only accounts for 2% or less of its domestic operating revenue. The company did not announce its overseas revenue in the first quarter, but said overall. Revenue increased by 14% year-on-year to 3.8 billion yuan. Compared with Japanese companies, Chinese companies’ overseas revenue accounts for a lower proportion of the entire industry, HSBC analysts said, “Although some leading companies such as BYD and CATL have taken specific measures. To gain global market share, overseas revenue contribution reaches about 30%, but we think this may be a good start rather than a ceiling. “These company’s Japanese peers have grown overseas revenue to more than 70% of their business. HSBC’s analysis found that gaps remained wide in other industries such as electrical equipment (20.4% vs 53.8%), machinery (21.6% vs 53.5%) and pharmaceuticals (9.9% vs 34.6%). Here are the company’s picks of China’s “going global” stocks, all rated “buy” and divided into three categories: Anker – a Shenzhen-listed seller of power banks and chargers that analysts note Amazon sales in the U.S. surged 65% year-over-year in April last year. HSBC reported that “Anker is also the only third-party supplier of smartphone peripherals certified by Apple in China, and its management includes Google veterans with expertise in building overseas sales pipelines.” Zhejiang Dingli – a cherry-picker listed in Shanghai and other lift manufacturers. “We believe Zhejiang Dingli will benefit from strong sales growth, especially in the U.S. market,” the HSBC report stated. The company added that “positive results” from the U.S. Department of Commerce’s anti-dumping duty review on May 1 may support Dingli’s gross sales. interest rate. The latest review found that Dingli sold products to the U.S. at discounts lower than previously reported, giving the company a different tariff rate than its peers. Snibe — Shenzhen-listed Shenzhen New Industry Biomedical Engineering Co., Ltd. (Snibe) sells clinical laboratory instruments and substances used in drug testing. HSBC said: “Given Snibe’s sales momentum in overseas markets, our healthcare analysts are more optimistic about Snibe and forecast a revenue compound annual growth rate of 29% in overseas markets from 2023 to 26, mainly driven by reagent sales and China’s The increase in the installation of large-scale instruments. It is no longer about being tough on China or worsening the situation in the United States – China relations. I think the conversation has now shifted to being tough on global trade or free trade,” Invesco Asia Pacific ( David Chao, global market strategist for Japan (excluding Japan), said in a webinar on Thursday. “Maybe the good old days of trade between the U.S. and Asia are over, but that doesn’t mean that trade disappears,” he said, noting that, for example, “we’re starting to see new trade between China and the Middle East route. Pointing out that Southeast Asian countries, including Singapore and Indonesia, have overtaken the EU to become China’s largest regional trading partner in the past few years, Japan is similar to Germany in 1992, and investing in local factories and subsidiaries has helped boost employment in other countries. .
