From Star Online: Business
4th July 2013
"Buy Chinese travel, not China, it stressed, remaining bullish that Chinese tourists will continue to travel, said the research house on Thursday."
KUALA LUMPUR: Amid the negative outlook in China and Asia at the moment, there are consumer stocks that present investors with opportunities, HSBC Global Research said.
Weaker-than-expected figures coming out of China and Beijing's greater tolerance for lower growth has led HSBC Global Research to cut its China GDP forecasts to 7.4% (from 8.2%) for 2013 and to 7.4% (from 8.4%) for 2014, and while this is bad news for China-dependent companies in the region, there were silver linings in the cloud.
Buy Chinese travel, not China, it stressed, remaining bullish that Chinese tourists will continue to travel, said the research house on Thursday.
Among the stocks that HSBC Global fancies will benefit from this are HK-listed Prada, cosmetic company Sa Sa, jeweller Lui Fook and South Korea's Hotel Shilla.
Elsewhere, it also identified companies in the region that it thinks will benefit in the longer run despite the recent market weaknesses. These include HK-listed Samsonite, Sun Art, Biostime, India's jewelry-maker Titan Industries, Korea's Hyundai Department Store and Indonesian healthcare company Kalbe Farma.
"They are not all necessarily deep value as such but their leadership positions and/or barriers to entry make them very attractive at the current levels, in our view," it said.
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