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China’s “stagnant” economy is putting some U.S. companies at risk, according to Bank of America.
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High youth unemployment and recent property crashes have put pressure on China’s economy.
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The bank has highlighted the top 10 stocks with the highest returns for China.
China’s economy has been reeling since the reopening of the COVID-19 pandemic, and that represents a major risk for U.S. companies that have a lot of exposure to the region.
High youth unemployment and Recent property developer defaults He said there are only two reasons why China’s economy has been “slowing down” in recent months Bank of America.
The bank does not think China poses a major threat to the US stock market. S&P 500’s Direct Chinese income exposure is less than 5%. But he highlighted companies that are overexposed to the region.
“Investors are waiting for a policy response from China,” BofA’s Savita Subramanian said in a note on Thursday. But so far, China’s lobbying efforts have had little effect. Turning the economy around.
These 10 companies are the most vulnerable to China’s continued economic slowdown, according to Bank of America.
10. Applied materials
Marker Huge
Market value: $122.6 billion
Revenue exposure to China: 33%
9. Cow research
Marker LRCX
Market value: 89.5 billion dollars
Revenue exposure to China: 35%
8. Broadcom
Marker AVGO
Market value: 373.8 billion dollars
Revenue exposure to China: 36%
7. NXP Semiconductors
Marker NXPI
Market value: 51.5 billion dollars
Revenue exposure to China: 38%
6. IPG Photonics
Marker IPPP
Market value: $4.9 billion
Revenue exposure to China: 38%
5. Wynn Resorts
Marker Wynn
Market value: $10.7 billion
Revenue exposure to China: 40%
4. Western Digital
Marker WDC
Market value: $13.7 billion
Revenue exposure to China: 47%
3. Monolithic power systems
Marker MPWR
Market value: $24.0 billion
Revenue exposure to China: 58%
2. Qualcomm
Marker QCOM
Market value: $117.8 billion
Revenue exposure to China: 67%
1. Las Vegas Sands
Marker L.V.S
Market value: $38.2 billion
Revenue exposure to China: 67%
Other companies with high revenue exposure to China include: Intel (27%) Tesla (26%) and Nivea (26%)
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