Donald Trump’s election victory has proved to be a major shot in the arm for most American stocks, but it certainly hasn’t helped China stocks. Trump’s platform of deregulation and tax cuts may result in a significant boost to U.S. corporate earnings. On the other hand, Trump has had consistently harsh words for U.S. international trading partners, specifically China and Mexico.
Trump has accused China of “robbing Americans of billions of dollars of capital and millions of jobs.” He has also threatened to impose a 45% tariff on imported Chinese goods. Is Trump more bark than bite when it comes to China?
That remains to be seen.
Understandably, many U.S.-listed Chinese stocks haven’t participated in the post-election rally. Trump may prove to be an unpredictable complication for Chinese companies in the near-term. But long-term investors can take advantage of the rare opportunity to buy some quality stocks following significant pullbacks. There are plenty of Chinese stocks that make fine long-term investments, and investors should buy the Trump-fueled dip.
With that as a backdrop, here are three china stocks to buy on this dip.