China & HK Strategy: The High-Yield Playbook

With the increase in volatility in the near term due to the uncertainties from potentially higher tariffs and the Trump-Xi meeting in APEC, there is a need to move to be more conservative, and the high-yield names are attractive candidates. We prefer Shenzhen Intl, China Everbright Env, Anhui Expressway, and China CRSC given their lesser/nil exposure to higher tariffs.