Investors are piling into China’s consumer sector amid speculation company earnings will be sheltered from the economic fallout of the trade war with the U.S.
Milltrust’s Global Emerging Markets Fund is heavily exposed to China’s domestic consumer sector which has helped explain the success of the strategy.
STOCK OF THE WEEK
Yihai International Holding Ltd., together with its subsidiaries, researches, develops, manufactures, distributes, and sells hot pot soup flavoring, hot pot dipping sauce, and Chinese style compound condiment products under Haidilao brand.
Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Yihai International Holding Ltd. (HKG:1579), with a market cap of HK$35b, often get neglected by retail investors. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market.