If the international expansion of Japanese companies is any guide, Chinese companies still have significant potential left in the global market. That’s according to HSBC analysts. They found that for mainland China-listed companies, known as A shares, just 11.7% of their total revenue last year came from outside the country. The portion was an even lower 10.3% when looking just at the largest companies, tracked by the CSI 300 index. In contrast, 35.3% of revenue for companies in Japan’s Nikkei 225 came from overseas last year, Steven Sun, head of research at HSBC Qianhai Securities, and a team said in a report this month. Since the pandemic, Chinese companies have increasingly looked to expand abroad due to slowing growth at home. Electric cars and consumer products have stood out to investment analysts for their international potential. “We believe structural growth opportunities from consumer companies’ global expansion remain underappreciated by investors, especially in EM markets,” UBS Asia Pacific equity analyst Christine Peng and a team said in a report on June 12 about the China consumer sector. 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. The company said in its annual report that last year that it set up subsidiaries in Germany and Indonesia and recruit …
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[mwai_chat context=”Let’s have a discussion about this article:nnIf the international expansion of Japanese companies is any guide, Chinese companies still have significant potential left in the global market. That’s according to HSBC analysts. They found that for mainland China-listed companies, known as A shares, just 11.7% of their total revenue last year came from outside the country. The portion was an even lower 10.3% when looking just at the largest companies, tracked by the CSI 300 index. In contrast, 35.3% of revenue for companies in Japan’s Nikkei 225 came from overseas last year, Steven Sun, head of research at HSBC Qianhai Securities, and a team said in a report this month. Since the pandemic, Chinese companies have increasingly looked to expand abroad due to slowing growth at home. Electric cars and consumer products have stood out to investment analysts for their international potential. “We believe structural growth opportunities from consumer companies’ global expansion remain underappreciated by investors, especially in EM markets,” UBS Asia Pacific equity analyst Christine Peng and a team said in a report on June 12 about the China consumer sector. 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. The company said in its annual report that last year that it set up subsidiaries in Germany and Indonesia and recruit …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
