As the retaliatory tariffs list grows longer and deeper into the core interests of both the US and Chinese economies,
the equity market volatility has intensified while discussions between the two countries have been underway. In addition
to major Chinese banks, which can benefit from a higher interest rate environment and asset quality improvement,
we believe that domestic consumption plays can also be relatively immune to a potential trade war between
the US and China. Besides mainstream consumer discretionary and staples companies, we include two pharmaceutical
companies, CSPC Pharmaceutical Group (1093 HK, BUY) and Sino Biopharmaceutical Ltd. (1177 HK, BUY),
in our Supertrends Asian Consumers’ focus list.