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SHANGHAI/HONG KONG, Dec 9 (Reuters) - Investors caught off-guard by China's dramatic COVID policy pivot are betting on both greed and fear as the economy starts to gradually reopen, snapping up shares in businesses from travel agencies and casinos to funeral companies. Providers of death care services, including Hong Kong-listed Fu Shou Yuan International Group (1448.HK), China's biggest cemetery operator and funeral service provider, have also drawn investors. The positioning for both the bright and dark side of China's COVID pivot reflects growing concerns from investors surprised by the rapid policy change, especially as COVID vaccination rates among the elderly remain relatively low. "But we still think that the way China can flatten the curve of new COVID cases without doubling down on tightening looks quite challenging." Morgan Stanley Chief China economist Robin Xing said China's economy may remain sluggish for another quarter or two, but growth will pick up after Spring.

☆ Investors Lose Taste for Pricey Chinese Liquor as Xi Renews ‘Common Prosperity’ Call
▼ + stars: | 2022-11-02 | by ( Weilun Soon | ) www.wsj.com time to read: 1 min

A production line at the Kweichow Moutai factory in the town of Maotai in Guizhou province, China. Chinese President Xi Jinping has a vision to distribute wealth more equally across the country. Investors are sobering up to what that could mean for the companies that make the nation’s beloved fiery booze. Mr. Xi recently doubled down on his plans for “common prosperity” during China’s weeklong Communist Party congress in October. Investors are worried that this could portend an industry crackdown, or simply be bad for the future sales of luxury baijiu distillers and companies that sell expensive goods to wealthy people.

☆ A recession looks increasingly likely. But Goldman Sachs says these stocks could beat the gloom
▼ + stars: | 2022-10-21 | by ( Zavier Ong | ) www.cnbc.com time to read: +5 min

Central banks are relentlessly hiking interest rates to rein in inflation — even at the expense of economic growth — prompting fears of a recession. "Concerns on sticky inflation and a tight labor market have focused investor attention on implications for rising rates and recession risk. Those stocks have high and expanding cash return on capital invested and return on equity, according to the bank. BlackRock says that's now an 'obsolete' strategy Investors keen to add growth names to their portfolio could also look to Goldman's list of high growth stocks. The bank also identified high growth names that are trading at an attractive valuation, including Watches of Switzerland and Standard Chartered .

☆ Tech giant Tencent was China's most valuable company for 6 years. In September, it finally lost the title — to a liquor company.
▼ + stars: | 2022-10-18 | by ( Matthew Loh | ) www.businessinsider.com time to read: +4 min

Chinese tech giant Tencent's value has dropped to the worth of a local Chinese liquor giant. Once worth nearly $1 trillion, the gaming and internet giant now hovers at less than half of its peak market value. On September 30, Tencent lost its status as China's most valuable company when its market capitalization dipped below that of Guizhou-based distiller Kweichow Moutai. Harsh restrictions on tech giants spelled the end of Tencent's glory daysMoutai liquor is placed in a liquor store in Moutai town in Guizhou province. Costfoto/Future Publishing via Getty ImagesThat Kweichou Moutai's market value could even be compared to Tencent's shows how far the tech behemoth has fallen.

☆ Posh ice cream, craft beer in vogue as Chinese downsize their love of luxury
▼ + stars: | 2022-10-13 | by ( Casey Hall | ) www.reuters.com time to read: +3 min

SHANGHAI, Oct 14 (Reuters) - Chinese consumers are typically known for lavish spending on high-end handbags, clothes and accessories that sustain Western luxury brands. Brands that have jumped on the trend include Kweichow Moutai (600519.SS), best known for $300 bottles of baijiu, the Chinese spirit popular at banquets. It debuted baijiu-infused ice cream at $10 a cup in May, racking up 2.5 million yuan ($350,000) of sales on the first day. Chinese consumers are "spoiling themselves with those little things and they're loving something novel," said Mark Tanner, founder of marketing agency China Skinny. "When times aren't so good, people want to feel better, guilty pleasures like ice cream can help," said Low.

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