JP Morgan continues to have a positive outlook on the Chinese stock market, with top picks including Tencent, Lao Pu Gold, MGM China, and Trip.com

JP Morgan published a research report stating that it reaffirms its bullish options trading strategy for the Chinese consumer market before the Lunar New Year (February 15 to 23). During this period, the bank prefers high-end liquor, quality protein (new dairy products and Wagyu beef), major condiments, gold, and the tourism industry. Historical experience shows that the appreciation of the RMB against the USD will boost returns in the Chinese stock market, with cyclical or growth stocks typically outperforming defensive stocks.

JP Morgan maintains a positive outlook on the Chinese stock market but believes that stock selection needs to be more refined. Preferred stocks include Tencent (00700.HK), Lao Pu Gold (06181.HK), MGM China (02282.HK), TAL Education (TAL.US), Trip.com (09961.HK)(TCOM.US), Haitian Flavoring and Food (03288.HK)(603288.SH), Moutai (600519.SH), Mengniu (02319.HK), and Wuliangye (000858.SZ)