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HSBC picks Chinese stocks to play a rising U.S. 10-year Treasury yield

Customers purchase handbags at a duty-free shop on China's National Day on October 1, 2021 in Haikou, Hainan Province of China.
Luo Yunfei | China News Service | Getty Images

As the U.S. 10-year Treasury yield climbs on Fed rate hike expectations, HSBC analysts said they've found a historical pattern of mainland Chinese stocks that can outperform during such transition periods.

The turning point — as defined by a peak in the 10-year yield — will likely come in the second quarter, the analysts said in a report Tuesday.

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