Citi lists Developed Market stocks with high revenue exposure to China

Citi’s quant researchers after China unleashed new stimulus plans drew up a list of stocks in developed markets that investors may want to consider for exposure to the world’s second-largest economy.

Cuts in short-term borrowing costs and lowered restrictions on home purchases are among the measures Chinese authorities announced last week to refresh the struggling property market and hit a 5% growth target. Chinese stocks (SHCOMP)(HSI) have soared, and the S&P 500 (SP500) got a boost, with the Materials and Industrials sectors among the beneficiaries.

In a Monday note, Citi screened for buy-rated, Developed Market stocks with revenue exposure to China of more than 20%. The resulting list is primarily based on companies’ self-reported geographic revenue breakdown in their annual reports, and the list may not necessarily be complete in part as that is not a mandatory disclosure, Citi said.

“With that said, this screen could still be a useful starting point to build more China exposure in a DM portfolio,” Chris Ma, Citi’s head of Asia quantitative research, said.

Tickers for U.S.-listed shares are listed in parentheses, and a RIC is listed for some companies:

• BHP Group (BHP) – Rev. to China: 62.4% – Australia – RIC: BHP.AX

• TDK (OTCPK:TTDKY)(OTCPK:TTDKF) – Rev. to China: 53.1% – Japan – RIC: 6762.T

• Tokyo Electron (OTCPK:TOELY)(OTCPK:TOELF) – Rev. to China: 44.4% – Japan – RIC: 8035.T

• Marvell (MRVL) – Rev. to China: 43.0% – U.S.

• Lam Research (LRCX) – Rev. to China: 42.2% – U.S.

• Western Digital (WDC) – Rev. to China: 41.6% – U.S.

• Prudential (PRU) – Rev. to China: 40.1% – U.K. – RIC: PRU.L

• Disco (OTCPK:DSCSY)(OTCPK:DISPF) – Rev. to China: 35.9% – Japan – RIC: 6146.T

• Corning (GLW) – Rev. to China: 32.7% – U.S.

• Advantest (OTCPK:ATEYY) – Rev. to China: 32.3% – Japan – RIC: 6857.T

• Broadcom (AVGO) – Rev. to China: 32.2% – U.S.

• HSBC (HSBC) – Rev. to China: 30.6% – U.K. – RIC: HSBA.L

• Anglo American (OTCQX:AAUKF) – Rev. to China: 30.4% – U.K. – RIC: AAL.L

• Intertek (OTCPK:IKTSF)(OTCPK:IKTSY) – Rev. to China: 29.5% – U.K. – RIC: ITRK.L

• Rohm (OTCPK:ROHCY) – Rev. to China: 28.0% – Japan – RIC: 6963.T

• ASML (ASML) – Rev. to China: 26.3% – Netherlands – RIC: ASML.AS

• Kone (OTCPK:KNYJF)(OTCPK:KNYJY) – Rev. to China: 26.0% – Finland – RIC: KNEBV.HE

• Estee Lauder (EL) – Rev. to China: 26.0% – U.S.

• Antofagasta (OTC:ANFGF) – Rev. to China: 25.6% – U.K. – RIC: ANTO.L

• SMC (OTCPK:SMCAY) – Rev. to China: 25.1% – Japan – RIC: 6273.T

• Metso (OTCPK:OUKPF)(OTCPK:OUKPY) – Rev. to China: 25.0% – Finland – RIC: METSO.HE

• Amphenol (APH) – Rev. to China: 23.0% – U.S.

• Nidec (OTCPK:NJDCY)(OTCPK:NNDNF) – Rev. to China: 22.8% – Japan – RIC: 6594.T

• Fanuc (OTCPK:FANUY)(OTCPK:FANUF) – Rev. to China: 21.6% – Japan – RIC: 6954.T

• Omron (OTCPK:OMRNY)(OTCPK:OMRNF) – Rev. to China: 21.0% – Japan – RIC: 6645.T

• Atlas Copco (OTCPK:ATLKY) – Rev. to China: 20.7% – Sweden – RIC: ATCOa.ST

• Agilent (A) – Rev. to China: 20.2% – U.S.