The Zacks Analyst Blog Highlights: China Life Insurance, Qudian, Hexindai, JD.com and China Eastern Airlines

The Zacks Analyst Blog Highlights: China Life Insurance, Qudian, Hexindai, JD.com and China Eastern Airlines

Zacks Equity Research
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For Immediate Release

Chicago, IL – July 17, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: China Life Insurance Company Ltd. LFC, Qudian Inc. QD, Hexindai Inc. HX, JD.com, Inc. JD and China Eastern Airlines Corporation Ltd. CEA.

Here are highlights from Tuesday’s Analyst Blog:

Can You Still Bet on China’s Economy? 5 Picks

In the second quarter, China’s economic growth declined to its slowest pace in 27 years. This is likely an outcome of the lingering trade war with the United States, which is weighing down on its export-oriented economy. President Trump was quick to claim credit for this downturn, claiming that his protectionist tactics had caused an exodus of corporations from the world’s second-largest economy.

But it isn’t all doom and gloom for China’s admittedly beleaguered economy.  Key economic indicators posted strong readings last month. Additionally, the country’s political advisors believe that while the economy may be facing challenges, its developmental path remains healthy.

Further, China’s pace of growth may have slowed in recent years, but it remains superior to most other economies. As China transforms itself from an export-led economy to one based on consumer spending, it would make good sense to invest in stocks from the country.

Q2 Growth Lowest in 27 Years, Stimulus in the Offing

China’s economy expanded by 6.2% in the second quarter, the slowest pace of growth witnessed since the first quarter of 1992. This is line with most expectations and also a notable decline from the pace of 6.4% experienced in the first quarter. For the first half of the year, growth was clocked in at 6.3%.

Economists believe that the decline in growth is largely attributable to the U.S.-China trade war. Despite the recent tariff truce, companies are skeptical about chances of a near-term solution. In fact, they believe that tensions could escalate if talks reach another impasse.

This is why a section of analysts think that Chinese authorities are likely to announce fresh stimulus measures in the months ahead. The People’s Bank of China is likely to reduce its reserve requirement ratio and cut interest rates in order to prevent growth from decelerating. Meanwhile, the government will continue to reduce taxes and fees to boost small and medium enterprises.

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