Morgan Stanley says some Chinese stocks could be winners if U.S.-China relations improve.
In one of its portfolios, the investment bank listed 30 Chinese companies that depend on the U.S. market for a major chunk of their revenue.
And they have a track record: The stocks outperform the MSCI China index by an average of 206 basis points a month when sentiment around U.S.-China relations is positive, Morgan Stanley analysts said in a report this month. They fall short by 86 basis points when relations are bad.
The portfolio responded positively to the U.S. government’s plan to increase capital spending, the report said.
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