A Chinese and American flag on a booth during the first China International Import Expo in Shanghai, November 6, 2018.
Johannes Eisele | AFP | Getty Images
Morgan Stanley says some Chinese stocks could be winners as US-China relations improve.
In one of its portfolios, the investment bank listed 30 Chinese companies that depend on the US market for a large part of their sales.
And they have a track record: stocks outperform the MSCI China index by an average of 206 basis points per month when sentiment in US-China relations is positive, Morgan Stanley analysts said in a report this month. Bad relationships fall below them by 86 basis points.
The portfolio responded positively to the US government’s plan to increase capital spending, the report said.
Here are five of Morgan Stanley’s tips from the group: