Chinese breeders have pursued this theme of investment since the beginning of the "trade war"

Chinese traders have been piling up shares of domestic-dependent companies over the past week since the rebound of Chinese equities, providing an indication of what might be their favorites for the rest of the year. Consumer stocks and consumer staples were the top performers among the 10 groups in the CSI 300 index, with Chinese markets bottoming out 28 months on July 5th. The two sub-indices rebounded at least While most of the mainland's shares rebounded in the context of easing trade tensions between China and the United States, companies such as Guangzhou Baiyunshan Pharmaceutical Holdings recorded a rise 3.6%. and Wuliangye Alcohol Distiller Yibin has gained favor with investors, thanks to limited exposure to overseas sales and a decent cash flow.

"Against a backdrop of war The two sectors will be very good investment targets throughout the year because of their defensive nature," said Wu Kan, fund manager at Shanshan Finance in Beijing. Shanghai. "These companies also have relatively healthy cash flows in their balance sheets and it's also one of the key accounting metrics that investors are watching closely because of the financial deleveraging."

14% this year, making it the worst-performing stock market benchmark among the world's leading markets, investors fleeing the markets because of fears of a rampant trade relationship with the states United States and the suppression of shadow banking will hinder economic growth. The Trump administration last week threatened additional duties of $ 200 billion on Chinese imports, which will come into effect as early as the end of August.

While the pharmaceutical inventory tracking gauge rose 8.9% last week. The best-performing sector, followed by a 7.3% gain in consumer goods, materials and telecoms, completes the top 4. Telecommunications companies were supported by ZTE's settlement with the US more to the lifting of a penalty that prohibited the Chinese telecom equipment manufacturer to buy important US technologies

UBS Group said that companies exposed to domestic consumption are in Leading the list and HFT Investment Management, which manages $ 7.5 billion of assets, said that popular national brands were part of quality assets. Guangzhou Baiyunshan Pharmaceutical, Chongqing Zhifei Biological Products, Wuliangye and Inner Mongolia dairy products manufacturer Yili Industrial Group

Guangzhou Baiyunshan Pharmaceutical has climbed 15 percent over last week and Tonghua Dongbao Pharmaceutical is up 13 percent. Wuliangye and Yili grew by at least 8.4% over the period.

"We are optimistic for companies that are surfing the wave of consumption and modernization of manufacturing," said Gao Ting, strategist based in Shanghai. "The key players in the consumer staples and discretionary goods sectors remain our top choices."