Credit Suisse (CS) Studies Chinese Home Appliance Sector

Credit Suisse (NYSE: CS) is upbeat about China’s home appliance sector. In its report titled ‘David & Goliath’, CS has stated that Chinese home appliance sector is expected to gain from various subsidies offered.

Share prices of firms engaged in this sector had already been performing well on the YTD basis. However, home appliance makers have emphatically stated that subsidies are not likely to have major positive impact on the sector. According to the report, there are several reasons other than the subsidies which contributed to impressive growth of appliance stock.

The report also stated that not all firms are expected to benefit from the subsidies in the same way. The report listed twelve small cap shares with impressive prospects. Out of these twelve stocks, it highlighted two Chinese and one Korean firm. These stocks are Skyworth (OTC: SWDHF), TCC International (OTC: TCCIF) and Korean Reinsurance.