The Globe and Mail reports in its Wednesday edition that investors in Chinese stocks next year will be seeking out businesses with global reach or other insulation from an economic downturn, after three straight years of China underperforming world markets. A Reuters dispatch to The Globe says that companies in defensive sectors such as health, medical innovation and exporters in the electric vehicles supply chain, as well as multinationals such as e-commerce firm PDD Holdings, will top the list. That is despite sell-side analysts turning bullish on China's broader market for next year, with Morgan Stanley and Goldman Sachs forecasting Chinese equities to outperform the S&P 500. "Since economic recovery is slower than expected, we lowered exposures which are sensitive to macro cycles," said Wang Qing, chairman at Shanghai Chongyang Investment Management. Chongyang is instead buying defensive high-dividend stocks, medical innovators with global competitiveness and advanced manufacturing backed by Beijing, Mr. Wang said, declining to list any investments by name. This follows China's blue chip CSI-300 Index sinking to five-year lows and losing 12 per cent over 2023 against a 15-per-cent gain for global stocks.