Investors should pay attention to Chinese listed companies seeking to grow their overseas revenue, as their global expansion will be supported by a weak yuan, cost advantages and China’s dominant role in global supply chains, according to Goldman Sachs.
Goldman recommended 25 companies – including Alibaba Group Holding, Contemporary Amperex Technology (CATL) and BYD – to ride on this theme, analysts led by Si Fu and Kinger Lau said in the report released over the weekend.
These firms, which spanned 25 industries from e-commerce to capital goods and healthcare and derived about a third of their annual revenue from overseas, gained almost 40 per cent this year, Goldman said.
That outpaced the 29 per cent advance in the Hang Seng Index and the 16 per cent rise in the CSI 300 Index of yuan-denominated A-shares over the same period.
Chinese companies, especially industry leaders, have increasingly looked abroad for growth as competition intensified and profit margins tightened in an increasingly saturated domestic market.
The trend accelerated this year as China’s exports showed resilience to US tariffs by diversifying into Southeast Asian and European markets, remaining a key pillar of economic growth.
