Promising China: problems and favourites

Promising China: problems and favouritesThere are still no clear signs of a recovery in the Chinese economy. The weakness of the Asian Dragon negatively affects the results of companies associated with China, such as Apple, large chip manufacturers or luxury goods retailers. Against the backdrop of falling Asian indices, analysts lower their forecasts for Chinese stocks.The government understands the high probability of not fulfilling its forecast for GDP growth in 2023 and is stepping up. On July 21, representatives of Chinese regulators held a meeting with international investors (which happens very rarely!). The goal is to increase confidence in the country's financial markets. The results of the meeting in the media have not yet hit.Low inflation allowed the NBK to reduce short rates by 10 percentage points. long rates are also likely to fall by 10 p.p. The NBK allowed the country's major banks to cut deposit rates, which would support margins and stimulate investment.We believe that technology remains the most promising sector in China, led by Alibaba Group (HK:9988), JD.com (HK:9618) and Tencent (HK:0700).All three companies are focused on consumer and business, and the consumer in China has not yet fully shown itself. Now the NBK's soft policy makes loans affordable and savings unprofitable, which in the medium term will force both businesses and the public to spend more money.Each of these companies has its growth drivers: Tencent is actively exploiting the recovery in the advertising and video game markets; Alibaba brings some business segments to market as separately traded companies, the first such project is Alibaba Cloud; JD.com management demonstrates a high level of efficiency in optimizing the cost structure, which will provide the company with double EBITDA growth with modest revenue growth.So we closely monitor the Asian market but do not forget about the risks.Profits to yall!#ForexChief #Alibaba #nyse #forexnews #stocks #worldnews #Market