HSBC named 14 shares to appreciate the appreciation of the renminbi Benefits Review of the eight-year history of the wave of North Water to Hong Kong more raging

Renminbi rose sharply on the onshore Renminbi against the US dollar (CNY) rose above 6.27 on Friday once it hit a new high since the “8.11” exchange rate reform in 2015. HSBC Global Research released a report reviewing the 8 renminbi surges that have occurred since September 2010, among which Chinese stocks listed overseas outperformed their mainland counterparts due to the strong capital inflows from the underlying shares. Therefore, the Bank expects that from 2017 The same is true for the ninth wave of surges since November, when the bank selected 14 beneficiary shares (see table). In addition, many brokers in the Mainland also believe that the revaluation of the renminbi will benefit the paper, aviation and renminbi assets.

Industrial finance blue chip benefit

HSBC listed the uptrend of RMB since September 2010, showing that among the shares in the MSCI China Index, the domestic sector, science and technology, public utilities, luxury consumer stocks and resources stocks are the most favored industries with strong RMB strength. Under the breakdown While hardware, retail, pharmaceuticals, semiconductors, automobiles and real estate dominated. HSI constituents performed better in the industrial, financial and public sectors.

The data also show that the recent rise of the renminbi, including November last year to the end of January this year, and January to September last year, were even more pronounced with North Water going down to $ 2.1 billion and $ 1.7 billion respectively Water flows into Hong Kong [see photo]. Therefore, HSBC believes that Hong Kong stocks will be supported by overseas capital inflows, share buybacks and hedging of bearish sentiment in the hedge funds, driving the north water to remain strong. The bank estimates the renminbi against the U.S. dollar this year will continue two-way fluctuations, expected this year, the renminbi may maintain its upward trend, the renminbi against the dollar this forecast is expected to see 6.2 to CNY last Friday night 11:30 closing price of 6.2990, there are still 1.57% upside potential.

HSBC selected the 14 stocks that benefited most from the appreciation of the renminbi. Each share recorded an average increase of 30% or more among the 8 surges between September 2010 and September 2017, There was a 60% to 100% increase in the fourth to eighth waves. Shares mainly include technology stocks, gambling stocks, auto stocks, pharmaceutical stocks, such as Tencent (00700), BYD (01211), GEG (00027) and so on.

Impacted on the mainland’s import and export slightly

In addition, CICC believes that the appreciation of the renminbi has a limited impact on the import and export of the Mainland but will affect some industries or companies. The bank pointed out that some papermakers that have their costs denominated in U.S. dollars but whose prices are denominated in RMB would benefit as the profit margins for exporters such as electronics, textiles, furniture and machinery in industries that rely heavily on the United States may be under pressure.

Orient Securities expects RMB appreciation will benefit paper, aviation and RMB assets such as real estate and financial stocks performance, if the dollar continued to weaken, expected to stimulate resources and commodities stocks performance. CITIC Securities pointed out that companies with a high proportion of overseas imports will most benefit from the appreciation of the Renminbi and those industries with debt-dominated foreign debt such as the U.S. dollar will also enjoy the most benefit.

Evergreen SYK Financial Wealth Management Strategist Wen Jie said the overseas debt-based shares, the appreciation of the renminbi will benefit the airline stocks, the other domestic housing stocks are also due to the dollar debt accounted for a large and beneficial; as for export-oriented shares is the most Pressure. However, he estimates that the uptick in aviation stocks may not be purely a result of the appreciation of the renminbi. “I believe other operational figures are even more important because the fluctuation in the renminbi may only affect 2% to 3% of the profits of the related companies. There are exchange rate hedging measures, I believe that little effect. “