Stocks with Chinese exposure
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Hey Insiders, One of the biggest pieces of news in the last week has been China abandoning its Zero-Covid policy and beginning to reopen its economy despite increasing COVID-19 cases in the country. This will majorly impact businesses worldwide as China is one of the world's largest purchasers and producers of goods. Oil markets, for example, surged when the news was public as investors anticipated that global oil demand would significantly increase with China raising its consumption level now that people can travel and businesses can reopen. Today, we are going to be looking at seven stocks that are U.S. based but have suffered due to their exposure to China's markets. All seven of these stocks are primed to rebound if the Chinese markets improve as expected. Onward and Upward,
Liam |
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 Stock To Watch: Las Vegas Sands (LVS) - LVS has seen a surge in U.S.-based activity this year but its major operations in Macao remain impacted by China's regulations.
- So far this year, the stock is up 29.5%, benefiting from the reopening of travel and public events in the United States.
- 67.9% of the company's exposure is in China, so a reopening in China could lead to a significant gain for the stock next year.
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 Stock To Watch: Qualcomm (QCOM) - Like the rest of the technology industry, Qualcomm has seen a significant decline this year, but its movements have been exacerbated by its inability to rebuild and restructure as a Chinese company impacted by local regulations.
- The stock is down 33.4% so far this year.
- 67.1% of its exposure is in China, so a reopening of the economy will significantly benefit the company.
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 Stock To Watch: Tesla (TSLA) - Tesla has had significant issues dealing with regulations in China. The company was forced to cut production at its Shanghai plant and has had supply issues with local suppliers.
- Tesla has 25.7% exposure to China, a significant increase from past years, with Elon Musk targeting China as a major market for the brand.
- Tesla is down 55.5% so far this year for various reasons, but its bet on China not paying off is a significant cause many journalists and retail investors ignore. Still, it is mentioned as a primary concern for institutional investors.
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 Stocks To Watch: Apple (APPL) - Apple has an 18.7% exposure to China.
- The company has been significantly impacted by production issues, including its facility in China being forced to close for seven days following a COVID-19 breach.
- The stock is down 19.4% so far this year.
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 Stock To Watch: Skechers (SKX) - The footwear company has most of its manufacturing overseas to lower costs.
- The exposure rate of the company to China is 19.9%
- The company's share price is down 2.3% so far this year.
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 Stock To Watch: Nike (NKE) - Similar to Sketchers, Nike has significant supply chain investments in China.
- Nike is down 33.1% so far this year, with supply issues compounded by the loss of major ambassadors and a move into the NFT space that has yet to pay off.
- The company has a 16.1% exposure rate to China.
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 Stock To Watch: Unity Software (U) - The stock is down 79.99% so far this year and has not benefited from some of the recent rebound in tech stocks, losing 17.5% in the last month.
- The stock has a 15.2% exposure to China which some investors have cited as a cause for recent losses.
- The stock has most than a 25% upside from most analysts.
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 |  | Liam Gill is a founder, lawyer and investor.
He previously founded Fumarii Technologies, which became a top 20 ranked cloud computing service (Yahoo Finance! 2019) valued at over $30M. He holds an LLB Laws (UK), MSc Management and Master of Laws and currently practices law in Vancouver, Canada.
|   | | Editor | Vibha Chapparike is a Freelance Writer & Editor at Inside.com. With her post-graduation in Management and Finance completed, Vibha is expanding her knowledge in venture capital, business, startups, and technology. She has had a career in public relations and communications. An ardent reader and writer currently residing in Singapore, you can follow Vibha on Twitter @VChapparike. | |
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