{"id":39677,"date":"2025-05-13T11:35:07","date_gmt":"2025-05-13T11:35:07","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/13\/us-china-trade-truce-lifts-chinas-economic-outlook-and-equities-these-chinese-stocks-could-benefit\/"},"modified":"2025-05-13T11:35:07","modified_gmt":"2025-05-13T11:35:07","slug":"us-china-trade-truce-lifts-chinas-economic-outlook-and-equities-these-chinese-stocks-could-benefit","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/13\/us-china-trade-truce-lifts-chinas-economic-outlook-and-equities-these-chinese-stocks-could-benefit\/","title":{"rendered":"US-China trade truce lifts China\u2019s economic outlook and equities: these Chinese stocks could benefit"},"content":{"rendered":"
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Asian equities climbed sharply on Tuesday, extending a global rally after the United States and China agreed to pause their trade war<\/a> for at least 90 days. <\/p>\n

Japan\u2019s Nikkei jumped 2% to reach its highest level since February 25, while Taiwan\u2019s tech-heavy index also gained 2 per cent. <\/p>\n

Chinese shares moved higher in early trading, and the MSCI\u2019s broadest index of Asia-Pacific shares outside Japan touched a six-month peak. <\/p>\n

On Wall Street, the S&P 500 advanced over 3 per cent and the Nasdaq surged 4.3 per cent, driven by gains in technology and consumer stocks.<\/p>\n

The rally followed news that the US would reduce its baseline tariff rate on most Chinese imports<\/a> to 30% from 145%. <\/p>\n

China responded by slashing its own tariffs to 10% from 125%. <\/p>\n

A separate White House order also cut the \u201cde minimis\u201d tariff on shipments from China to 54% from 120%, effective May 14, while maintaining a $100 flat fee.<\/p>\n

Firms revise outlook for China’s economy<\/h2>\n

The trade reprieve has prompted several institutions to revise their outlooks for China\u2019s economy. <\/p>\n

UBS said in a note that China\u2019s GDP growth in 2025 could reach between 3.7% and 4%, up from a prior estimate of 3.4%, citing a \u201csmaller shock\u201d to trade-related activity.<\/p>\n

Morgan Stanley has also upgraded its near-term GDP forecasts for China. <\/p>\n

The bank expects second-quarter growth to exceed its current 4.5% projection, driven by front-loaded exports as companies look to benefit from the reduced tariffs. <\/p>\n

Third-quarter growth could also display temporary resilience, now expected to come in above 4%.<\/p>\n

Nomura has upgraded Chinese equities to \u201ctactical Overweight\u201d and shifted some of its allocation from India into China. <\/p>\n

Citi, meanwhile, lifted its target for the Hang Seng Index to 25,000 by year-end, with a forecast of 26,000 by mid-2026. <\/p>\n

Baidu, Tencent, TSMC among technology, consumer and internet stocks in focus<\/h2>\n

The sectors expected to benefit the most from the trade truce include technology, consumer, and communication services, according to several analysts. <\/p>\n

Citi strategist Pierre Lau, while remaining cautious on exporters, also prefers domestic-facing sectors, especially consumer and technology.<\/p>\n

Morningstar\u2019s Kai Wang said the current recovery may come faster than the last trade war cycle, which saw markets bounce back within a month of tariff relief.<\/p>\n

Wang cited Baidu, Tencent and NetEase as attractive picks in China\u2019s communication services sector. <\/p>\n

Baidu and Tencent stand out for their investment in artificial intelligence, while NetEase offers exposure to the growing domestic gaming market. <\/p>\n

He also highlighted TSMC as a key beneficiary due to its dominant position in advanced semiconductor manufacturing.<\/p>\n

Citi Research flagged sectors highly sensitive to tariff changes, including communications infrastructure, tech hardware, and solar equipment. <\/p>\n

Companies such as Innolight, JCET, Eoptolink, TFC Optical and JA Solar generate a large portion of their revenues from the US, making them likely beneficiaries of easing trade friction.<\/p>\n

Citi is overweight on internet, technology, and consumer sectors, with top picks including Tencent, BYD, AIA, Huaneng Power, Atour and Anta. <\/p>\n

The bank also prefers Hong Kong-listed H-shares over mainland A-shares, expecting US rate cuts to support the Hong Kong dollar.<\/p>\n

Citi also upgraded PDD Holdings to \u201cBuy,\u201d viewing the trade truce as a boost for its Temu cross-border platform. <\/p>\n

The firm expects improved profits in the second quarter as sellers benefit from preloaded inventory and better pricing leverage.<\/p>\n

ETFs offer exposure, with caveats<\/h2>\n

Investors seeking broader exposure to Chinese markets without taking single-stock risk may consider exchange-traded funds such as the KraneShares CSI China Internet ETF (KWEB), iShares China Large-Cap ETF (FXI), and Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR). <\/p>\n

However, analysts caution that these funds are prone to sharp price swings, reflecting the volatile nature of Chinese equities.<\/p>\n

William Ma, chief investment officer of GROW Investment Group, said the rebound in Chinese stocks could mark the start of a sustained re-rating. <\/p>\n

\u201cPolicy easing and targeted consumption support from Beijing could deliver an additional boost,\u201d he said, adding that valuations remain undemanding. <\/p>\n

Maybank\u2019s CIO Eddy Loh echoed the view, highlighting opportunities in communication services and consumer discretionary stocks as markets reposition for a post-tariff landscape.<\/p>\n

The post US-China trade truce lifts China\u2019s economic outlook and equities: these Chinese stocks could benefit<\/a> appeared first on Invezz<\/a><\/p>\n

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Asian equities climbed sharply on Tuesday, extending a global rally after the United States and China agreed to pause their trade war for at least 90 days. Japan\u2019s Nikkei jumped 2% to reach its highest level since February 25, while Taiwan\u2019s tech-heavy index also gained 2 per cent. Chinese shares moved higher in early trading, <\/p>\n","protected":false},"author":1,"featured_media":39678,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-39677","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=39677"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39677\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/39678"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=39677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=39677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=39677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}