Looking at the recent slump in several tech names, especially Apple as well as several other Huawei-linked semiconductor companies, one would conclude that the US tech sector is most exposed to further escalation from the US-China trade war. But is that true?
In response to growing investor interest, Bank of America’s Hans Mikkelsen and other members of the bank’s economist team recently fielded a number of investor questions on US companies’ exposure to China, and as a result updated figures and tables from a piece that was published first last year. What BofA found is that based on the latest full year 2017 earnings results available, US sectors most sensitive to China as judged by share of sales include Technology, naturally, as well as Autos and Consumer Products.
Below, BofA provides an updated screen of the specific names with sales exposure to China. It is wroth noting that BofA’s Figures 1 and 3 are based on a subset of companies, as not all break out sales exposure to China. Which is also why the bank included in Figure 2 and Figure 4 the more commonly populated region category of Asia Pacific.