What Foreign Investors are Buying and Selling on China Rout

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Foreign investors are zeroing in on health-care and consumer stocks and ditching some old favorites, as they sift through the spoils of a $2 trillion selloff in China’s equity market, Bloomberg News reported. Companies exposed to China’s growing middle class and resilient to external turbulence like the trade fight are popular picks for foreigners investing via trading links with Hong Kong. Liquor maker Kweichow Moutai Co., Han’s Laser Technology Industry Group Co. and Jiangsu Hengrui Medicine Co. are among those in demand, while Gree Electric Appliances Inc. and Shanghai International Airport Co. have fallen out of favor. “Investors are focusing on defensive stocks, such as companies with strong earnings visibility and a high probability of delivering growth regardless of the short-term macro slowdown,” said Caroline Maurer, head of greater China equities at BNP Paribas Asset Management in Hong Kong. Read more.