1017 GMT - China and the U.S. rolling back tariffs should inject positive sentiment into Hong Kong and Chinese equities, Citi Research analysts say. While the reductions will last for 90 days, bilateral discussions will continue, Pierre Lau and others write in a note. Citi flags communications infrastructure, tech hardware, solar equipment, and semiconductors as the sectors that are most sensitive to tariffs. Among the firms with the largest profit mix generated from the U.S. are: Innolight, Eoptolink, TFC Optical, Tongfu, JCET, Jinko and JA Solar. Citi prefer H- to A-shares on a 12-month basis, assuming more rate cuts in the U.S.--benefitting HKD-- than in China. It is overweight on internet, tech and consumer sectors, with top picks including Tencent, Huaneng Power, Trip.com, BYD, AIA, Atour and Anta.(fabiana.negrinochoa@wsj.com)
(END) Dow Jones Newswires
May 12, 2025 06:17 ET (10:17 GMT)
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