CNBC Pro

5 Morgan Stanley picks could beat the market if U.S.-China relations improve

Share
A Chinese and U.S. flag at 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 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.

Here are five of Morgan Stanley's picks from the group:

More In Street Calls

CNBC ProHere are Friday's biggest analyst calls of the day: Tesla, Costco, GE, Plug Power, Facebook & more
CNBC ProJPMorgan predicts this under-the-radar streaming stock could rally more than 30%
CNBC ProUBS slashes FedEx earnings estimates, citing tight labor market, rising wages