LINE

    Text:AAAPrint
    Voices

    Trade war to hurt U.S. companies more than Chinese: MSCI expert

    1
    2018-05-03 10:59:41Xinhua Gu Liping ECNS App Download

    Amid the trade tension between China and the United States, while much of the ongoing analyses focus on China's reliance on exports to the U.S., American companies and their investors have greater revenue exposure to China, an expert said.

    Wei Zhen, head of China research at global index provider MSCI, said in an article on the MSCI website, "5.1 percent of the revenues of companies in the MSCI USA Index come from China and may be at risk as a result of a trade war. In comparison, only 2.8 percent of the revenues of the companies in the MSCI China Index come from the U.S."

    To quantify the potential impact from an equity portfolio perspective, MSCI examined Chinese firms' revenue exposure to the United States and vice versa at a sector level, derived from the MSCI Economic Exposure database.

    The study showed that China's information technology and energy sectors are the most exposed to the U.S. economy. On the other hand, the U.S. information technology, materials, industrials, consumer staples and energy sectors all have relatively high exposure to China's economy.

    "While an expanded trade war could lead to a 'lose-lose' outcome, there could be greater impact for stocks in the U.S. Overall, they are more exposed to the Chinese economy than the other way around," Wei noted.

    A trade war could also have repercussions beyond the two countries.

    According to MSCI, international developed markets have more exposure to the United States in general, especially within the healthcare and consumer discretionary sectors, though they are more dependent on China within real estate.

    Emerging markets and Asia ex Japan are more exposed to China by wide margins across all sectors, with the exception of information technology and consumer discretionary, where the differences are smaller.

    "Given the potential effects of a trade war, even high-quality stocks with attractive valuations that have such exposure may need to be re-evaluated," Wei said.

      

    Related news

    MorePhoto

    Most popular in 24h

    MoreTop news

    MoreVideo

    News
    Politics
    Business
    Society
    Culture
    Military
    Sci-tech
    Entertainment
    Sports
    Odd
    Features
    Biz
    Economy
    Travel
    Travel News
    Travel Types
    Events
    Food
    Hotel
    Bar & Club
    Architecture
    Gallery
    Photo
    CNS Photo
    Video
    Video
    Learning Chinese
    Learn About China
    Social Chinese
    Business Chinese
    Buzz Words
    Bilingual
    Resources
    ECNS Wire
    Special Coverage
    Infographics
    Voices
    LINE
    Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
    Copyright ?1999-2018 Chinanews.com. All rights reserved.
    Reproduction in whole or in part without permission is prohibited.
    主站蜘蛛池模板: 开原市| 望城县| 正蓝旗| 普陀区| 邵武市| 东海县| 大理市| 齐齐哈尔市| 延津县| 南雄市| 松桃| 太谷县| 怀集县| 简阳市| 汨罗市| 团风县| 上栗县| 上蔡县| 潮安县| 大足县| 福安市| 鄂托克前旗| 牙克石市| 灵丘县| 五家渠市| 古浪县| 铅山县| 阿瓦提县| 黄石市| 柞水县| 宁化县| 靖州| 焦作市| 聂荣县| 涿州市| 周宁县| 三亚市| 西藏| 抚顺县| 庐江县| 松溪县|