China’s stock market, represented by the MSCI China Index, surged more than 35 per cent last month, driven by aggressive stimulus measures aimed at jump-starting the slowing economy. While this could indicate the onset of a broader recovery for the world’s second-largest economy, questions remain regarding the sustainability of this rally.
Using FactSet’s screening tool, I identified Canadian stocks with Chinese exposure by applying the following criteria:Source: FactSet the world’s largest methanol producer, ranked No. 1 on our screen with 27.4 per cent of its sales coming from China. Methanol is gaining traction as a cleaner alternative to fossil fuels, and, according to an MIT Technology Review study, China is betting big on methanol-powered vehicles to reduce carbon emissions. A rebound in consumer spending and travel could fuel increased automobile demand, driving up methanol consumption and thus benefiting Methanex.