Entering text into the input field will update the search result below

13 Firms Set To Profit From An Open China

Apr. 11, 2018 12:08 PM ETAAPL, AMZN, BABA, BAYZF, BEN, BX, DE, FANUY, MON-OLD, MSFT, GE, AGN, UL, PG12 Comments


  • Xi Jinping de-escalates the trade war rhetoric.
  • Autos get all the headline love.
  • Global leaders are set to profit if policies get implemented.
  • 13 global leaders that could benefit from China opening up.

China's President Xi Jinping announced to further open up its markets to foreign investors. In my view, this is a clear attempt to end the trade war dynamic which has been developing between the U.S. and China. There are 3 reasons I view this as a clear positive development for investors: the trade war rhetoric is likely to cool off, it is a highly positive development for U.S. and European high-tech market leaders, and the speech indicates an understanding of the role of free capital markets to optimize allocation decisions.

Without wanting to repeat news (read it here), there are a few key promises made:

  • To protect foreign IP rights
  • To open up limits on foreign investments into banks, securities, and insurance companies
  • To combat monopolies

Secretary of Commerce Wilbur Ross has previously indicated an important aim of the tariffs is to influence China to stop stealing U.S. intellectual property rights. With this speech, Xi Jinping looks like China is ceding that wish. In my view, the rhetoric will go down a notch. It could rekindle if China takes too long implementing actual policies.

The news is especially favorable for companies with strong global market share (except in China) which they derive from strong intellectual property. If this intellectual property is now respected in China, it becomes a more level playing field. To me, this seems one of the most actionable takeaways from Xi Jinping's announcements.

Although the headlines are about autos who will have tariffs decreased, I believe firms like listed below will ultimately derive much greater benefits. I filtered companies for global business, determined subjectively whether they derived a strong competitive advantage from intellectual property, and disqualified firms I believe overvalued:

In the past, I've offered both bullish and bearish commentary on Apple. Including specific commentary on

ChartChina GDP Growth data by YCharts

This article was written by

Bram de Haas profile picture
Special-Situation And Event-Driven Ideas To Improve Risk Adjusted Returns
15 years of investing and I feel like a rookie in his first year at the academy. My roots are in the value school but over time I've learned to respect different approaches. I'm interested in what quants do, options traders do, and even what WallStreetBets is doing (keep your friends close and...)

I gravitate towards special-situations. That means situations around companies or the market where the price can move in a certain direction based on a specific event or ongoing event. This eclectic and creative style of investing seems to suit my personality and interests most closely.

Since 2020 I host a podcast/videocast where I discuss (special-situation/event-driven) market events and investment ideas with top analysts, portfolio managers, hedge fund managers, experts, and other investment professionals. I highly recommend it (pick episodes around topics that interest you) for the amazing guests that come on with regularity.

I've been writing for Seeking Alpha since 2013 after playing p0ker professionally. In 2018 I founded Starshot Capital B.V. A Dutch AIF manager. Follow me on Twitter @Bramdehaas or email me Dehaas.Bram at Gmail

Analyst’s Disclosure: I am/we are long AGN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.