4 Stocks to Buy on China's Stimulus for Economic Revival

Monetary Stimulus Package - China's government launched its largest post-pandemic monetary stimulus package, indicating more fiscal support is forthcoming [1] - The People's Bank of China (PBOC) will reduce reserve requirement ratios (RRR) by 0.5 percentage points and the main policy interest rate by 0.2 percentage points, with potential for further cuts [1][2] - Mortgage rates for existing home loans will be reduced by 0.5 percentage points, and the minimum down payment for second homes will decrease from 25% to 15% [2] Funding and Investment Support - The PBOC will increase funding support for commercial banks lending to state-owned firms from 60% to 100% [2] - Eligible institutional investors can borrow treasury bonds and central bank bills directly from the PBOC, using assets like ETFs as collateral [2] - The central bank will provide refinancing loans for banks extending credit to publicly traded companies for share buybacks [2] Market Reaction and Stock Recommendations - Wall Street reacted positively to the news, interpreting it as beneficial despite the energy sector not showing expected demand revival [3] - Selected stocks linked to China include: - Alibaba Group Holding Limited (BABA): Expected earnings growth rate of 0.7%, with a Zacks Consensus Estimate improvement of 5.9% over the past 60 days, Zacks Rank 2 [4] - Amphenol Corporation (APH): Expected earnings growth rate of 16.6%, with a Zacks Consensus Estimate improvement of 1.2% over the past 60 days, Zacks Rank 2 [4] - Atour Lifestyle Holdings Limited (ATAT): Expected earnings growth rate of 32.6%, with a Zacks Consensus Estimate improvement of 9.9% over the past 60 days, Zacks Rank 1 [5] - Trip.com Group Limited (TCOM): Expected earnings growth rate of 22.6%, with a Zacks Consensus Estimate improvement of 6.3% over the past 60 days, Zacks Rank 2 [5]