Best buys from the 880 Shenzhen stocks under the connect scheme
Analysts give their stock picks after green light given to the Shenzhen Hong Kong stock connect scheme
Home appliances, liquor, finance and IT are some of the stocks analysts see as the crown jewels among the 880 Shenzhen listed firms that international investors will be allowed to trade before Christmas.
After gaining State Council approval on Tuesday for the long-awaited Shenzhen and Hong Kong Stock Connect, Hong Kong Exchanges and Clearing said the new cross border scheme will kick off within four months and no later than Christmas.
Under the scheme, international investors using Hong Kong based brokers can trade 880 stocks listed in Shenzhen, including 270 on the main board, 410 on the SME board and 200 on the Nasdaq-style ChiNext board. The ChiNext board will be for professional investors only due to its speculative nature.
Mainland investors can also buy and sell 417 Hong Kong stocks via the cross border scheme using mainland brokers.
Stock picks from Swiss lender Credit Suisse include white liquor makers Wuliangye and Yanghe, automation firm Inovance, video surveillance maker Dahua and its peer Hikvision, and technology firm Tianshui Huatian.
Credit Suisse also recommends electronics exporters Luxshare Precision, telecom firm Wangsu as well as acoustic components maker GoerTek which sells products to big brands such as Sony, Samsung and Lenovo.