[ET Net News Agency, 16 December 2019] Citi Research cited media reports noting that
the US President Donald Trump has agreed to a limited trade agreement with China that will
cancel the List 4B (US$156bn) tariffs and roll back existing tariff rates.
The US may offer to slash existing tariff rates by half on US$360bn goods originating
from China. The phase 1 deal may also include measures relating to intellectual property
protection, opening up of China financial markets and currency manipulation.
The research house thinks Shenzhou International (02313), Techtronic Industries (00669),
Kingboard Laminate (01888), Man Wah (01999), Hangzhou Great Star Industrial (002444) would
most benefit. Citi thinks China's removing the retaliatory tariff can't be ruled out,
which would benefit paper sector companies like Nine Dragons Paper (02689) and Lee & Man
Paper Manufacturing (02314). (KL)