Which stock will benefit from China stimulus package?
The share price of Chinese concept stocks skyrocketed after the announcement of huge stimulus package which includes cheap funding for company to buyback shares. Such measure is unprecedented and hence market has reacted to the announcement positively. HSI index is trading around its historical 10-year PE now. If you have yet to jump into the bandwagon to catch the sharp rise of the Chinese stocks, it is better to wait for the market to pull back before buying the stocks. Alternatively, I think we can also look at stocks that may benefit if the China economy improves. Such stocks may include stocks that have substantial exposure to Chinese market, eg $LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$ $Estee Lauder (EL.US)$ $Nike (NKE.US)$ etc.
I have recently built a position in Nike. Nike share prices has plunges more than 50% from its peak due to management issue and intense competition. However, the announcement on the appointment of Nike Veteran Elliot Hill as CEO has boasted the confidence of investors. More than a quarter of Nike's revenue come from China. With the company steering to the right direction and the growth prospect of its China market, i will see Nike as a good long term investment.
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Someone with a passion for investing with the goal of retire comfortably
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新手上路00882 : buy the dip.
酉 : I suggest removing the director of the National Development and Reform Commission.