Barclays Plc said investors should buy Chinese consumer directionary stocks over consumer staples before this month’s meeting of the National People’s Congress, while avoiding health-care companies.
Real wage inflation may help consumers spend more on discretionary products, Barclays said in a report dated today. The analysts said government policies aimed at expanding hospital capacity and ensuring essential drugs are available at lower cost will be positive for patients and negative for companies such as Sinopharm Group Co.
Baidu Inc. and Sina Corp. are among Chinese Internet companies that will benefit from growth in e-commerce and a shift in advertising budgets to online video from television because of new regulations limiting entertainment programs, they said.
— With assistance by Allen Wan