STOCKS NEWS EUROPE-CS highlights sectors from China threat

China has long been seen as an opportunity for many investors, but Credit Suisse says Chinese corporates also pose competitive threat to their international peers at home and abroad, especially in sectors like industrial equipment, steel and wireless infrastructure.

The broker cites the reasons as the low cost of capital for Chinese firms, the excessive rate of investment to GDP, weak enforcement of intellectual property laws and a market that has achieved critical mass.

"In addition, there appears to be subtle change in the treatment of domestic vs international companies by authorities in China (which impacts those sectors exposed to state spending, such as capital goods)," Credit Suisse says in a note.

It highlights ABB (ABBN.VX), Siemens (SIEGn.DE), Ericsson (ERICb.ST), DSM (DSMN.AS), Air Liquide AIR.PA, ArcelorMittal (ISPA.AS) (MTP.PA), Q-Cells (QCEG.DE), Gamesa (GAM.MC) and Alstom (ALSO.PA) among the companies that could be at risk from Chinese competition.

However, it also says China's growth story remains an opportunity for miners, pharmaceuticals, luxury goods companies and tobacco firms.

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