CMBI Research China and Hong Kong Stock Recommendations (April 2024)

CMB International Capital Corporation It is a wholly owned subsidiary of . China Merchants Bank (Hong Kong: 3968 /shaman: 600036 /OTCMKTS: chicky /OTCMKTS: CIHHF) – one of China’s largest banking groups and the largest privately owned bank. They consistently release free research pieces and post them on their website. china and Hong Kong Stock Recommendations (our first chapter To see the full list tag for us EM Stock Pick Tear Sheet)

Stocks covered this month april This post includes:

Weichai Power, BYD Company, Guangzhou Automobile Group, SANY International, Hangzhou Tigermed Consulting, Yonyou Network Technology, GoerTek, Vesync, Luxshare Precision Industry, Ping An, Zhejiang Dingli Machinery, Great Wall Motor, New Oriental Education, Xiaomi Corp, Li Ning, Jiangsu Hengli Hydraulic, Zhongji Innolight, Bosideng International Holdings, TK Group Holdings, Akeso, Yunkang Group, Haidilao International Holding, China Life Insurance, Haier Smart Home, Nayuki Holdings, Atour Lifestyle Holdings, RemeGen, PICC Property and Casualty Co Ltd, Joinn Laboratories China, Jinxin Fertility Group, CMGE Technology, Zoomlion Heavy Industry, Huitongda Network and China MeiDong Auto Holdings

They also put out monthly lists (and post them on their website). 20+ High Conviction Stock Ideas – i.e. Chinese stock recommendations (our In May, June, July, August, September, October, November, december, January-February & March A post summarizing this) However, this list doesn’t change much from month to month. Stocks Covered by CMBI april Here’s the list (including additions and deletions) and what’s included in this post, along with updated stats and charts:

Li Auto, Geely Automobile, Weichai Power, Zhejiang Dingli, Bosideng International Holdings, Haier Smart Home, Vesync, Kweichow Moutai, BeiGene, PICC P&C, Tencent, Alibaba, Pinduoduo, Amazon.com, Netflix, Kuaishou, GigaCloud, CR Land, FIT Hon Teng, Xiaomi, BYDE, Innolight and Kingdee

A quick look at Twitter this morning reveals another Chinese military exercise underway around Taiwan.

Again, as we mentioned in the interview we covered: Posted on May 19th, China imports more chips than oil and is as dependent on Taiwan as the United States. This could reduce the risk of conflict as Chinese consumers rely on smartphones equipped with chips that are part of Taiwan’s supply chain. In other words, China will not want to interfere with this. Of course, some impatient people on both sides may do something to sabotage this. I hope that doesn’t happen…

Additionally, ZeroHedge recently published the following gloomy article about China’s economic situation:

China is facing a serious deflationary collapse that can no longer be hidden. (Zero Hedge) May 2024

The biggest story in China in the new millennium was the country’s debt explosion. China’s current debt-to-GDP ratio is estimated to be nearly 300%. (official figures), most of the debt was incurred over the last 15 years. Although China’s debt spending accelerated in part due to the global credit collapse in 2008, A lesser known factor is IMF Special Drawing Rights Basket. This process began around 2011 and the IMF requires all prospective applicants to underwrite a variety of debt instruments before they can be added to the global monetary mechanism.

(Maybe China should have stayed away from the IMF…)

This equally dismal video Falun Gong affiliated chinese observer Also included in the post.

Are 93% of stores closed? The Chinese economy is over! Top neighborhoods in Beijing, Shanghai (China Observer) 15 minutes 48 seconds (May 2024)

According to data from Redmeal, as of May 10, 2023, there were approximately 201,570 catering establishments operating in Shanghai, with high-end restaurants with an average spend of more than 500 yuan accounting for 1.35%; 1,000 yuan accounts for 0.31%. At the time, Shanghai had more than 2,700 high-end restaurants with an average spend of more than 500 yuan. According to industry officials, Existing physical stores are still closing in large numbers. According to one statistic, the physical store closure rate in China is as high as 93%.

As in the West, absurd COVID-19 lockdowns are partly to blame for physical store closures, but the video only makes a passing reference to store closures. Impact of e-commerce. China has much more densely populated cities with mid-rise and high-rise apartments compared to urban sprawl in the United States and other countries, making e-commerce shipping much easier and faster.

Therefore, it is natural to assume. The disruption of small brick-and-mortar retail businesses by e-commerce is more advanced in China than in Western countries. And America (where large suburban stores started killing many small businesses and downtowns decades ago…). What will happen to all these small entrepreneurs (because online competition is also fierce) and their employees (be they delivery drivers?) is something that Xi Jinping will have to deal with as exports slow down and that is something investors need to consider when investing in China. It will be another headache to do.

If you go back to CMBI Research and click on the CMBI website, you will see the following message: No pop-ups They ask me what type of investor I am or where I am located. However, at the end of each research report there is a disclaimer that readers should be aware of:

This post is no You must quote directly from the research paper itself (beyond giving a title to the linked research paper – keeping the disclosures above in mind).

To make your life easier, this post includes:

• A title containing the stock name.

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• Link to Wikipedia page (for what it’s worth…)

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And as always, this post Provided for informational purposes only (And to make your life easier…). This does not constitute investment advice and/or recommendations…

Weichai Power (she: 000338 /Hong Kong: 2338 / at: WI4 /OTCMKTS: Waysheep) It was established in 2002 by Weichai Holding Group Co., Ltd. as its main sponsor and qualified domestic and foreign investors. We are a developer and manufacturer in China. diesel It is headquartered in Weifang, Shandong Province, People’s Republic of China. It also manufactures forklift and non-diesel engine vehicle parts.

BYD company (Hong Kong: 1211 / she: 002594 /OTCMKTS: something to do / Okay) We are a high-tech company dedicated to technological innovation for a better life. BYD was founded in February 1995 and has grown rapidly over the past 20 years, creating more than 30 industrial complexes worldwide and playing an important role in the electronics, automobile, new energy, and railway-related industries.

Guangzhou Automobile Group (Hong Kong: 2238 /shaman: 601238 / at: 02G /OTCMKTS: GNZUF / Gnew) big joint venture automobile enterprise It is listed on the Hong Kong and Shanghai stock exchanges. Its main business covers seven major sectors: research and development, automobiles, components, energy and ecology, internationalization, commerce and transportation, and investment and finance. GAC Group is now transforming itself into a technology-based company with all its capabilities.