Investment Guru, Paul Mampilly says to look for the silver lining in the US-China trade warfare. Mampilly points out that Chinese stocks, like Tencent Holdings, China Mobile, and crude oil giant, China National Petroleum Corporation are on the rise, and offer a good opportunity to make a profit.According to an article by Paul Mampilly, published on the Banyan Hill Publishing website, Chinese stocks can be purchased at a discount. A CNBC report confirms that this US-China trade war has already resulted in a loss of one-quarter in major stock values, knocking the country from the stock markets number two spot. During the last six months, Tencent Holdings slipped from $59.75 to the current $40.42, and with this in mind, Mampilly says if you’re searching for a worthwhile investment, at a discount, you can find what you’re looking for in the Chinese stock market.
A Look At President Trump’s Trade War
President Trump has currently set the tariffs at $200 billion, which has weakened the entire Chinese stock market. While this commercial war will probably decrease the spending power and wealth of American consumers, our economic stability will remain intact. However, Mampilly points out, China has a great dependence on trade surplus, so the trade war is diminishing it’s GDP. This is a country that is use to growing at a fast pace, but these tariffs are damaging.The motivation by Trump is the on-going systematic violation of intellectual property rights by Chinese industries.
Despite the sanctions, China reacted by announcing duties of hundreds of American products, whose imports are worth $50 billion dollars a year, such as automobiles, and soybeans.But Paul Mampilly also notes, this discount won’t last forever because China has other irons in the fire. Foreign companies wanting to be active in China can set up a joint ventures with domestic companies. Especially in the auto industry, such joint ventures are common. Additionally, China has the new Yuan oil contracts, which will give rise to their economy.We don’t knows how long this political turmoil will continue, but the experts like Paul Mampilly agree that now is the time to take advantage of China’s golden stock prices.