The global investment bank Morgan Stanley has said that Chinese shares could be an investing opportunity right now.

What did Morgan Stanley say about Chinese shares?

The chief investment officer (CIO) of Morgan Stanley’s wealth management, Lisa Shalett, explained that whilst the US share market has rebounded from the concerns about rising interest rates, the Chinese share market has dropped, with one Chinese index being down 14% over one month.

Ms Shalett explained that some investors might be concerned about further weakness in China because of the slowing long-term growth and the possibility of a higher interest rate.

But Morgan Stanley doesn’t think that investors should be worried, indeed it said that the selloff could be a buying opportunity.

China was the only major country in the world to see GDP growth in 2020 and growth this year could be better than some economists are expecting because of two reasons.

One reason Ms Shalett pointed out is that rising US bond yields and inflation expectations supposedly help stem the dollar’s weakness against the Chinese currency, which is a potential positive for Chinese exporters.

The other reason is that a high level of demand and high level of household savings in China could lead to consumption growth of 8% to 10% over the next two years, according to an independent research organisation called Alpine Macro.

Another point to remember is that whilst the northern hemisphere (and Australia) have unleashed huge amount of stimulus to boost the economy, China only provided stimulus equivalent to 1.5% of GDP. This should mean there won’t be much of an ecominic drag in China as the stimulus ends.

Ms Shalett also said that Chinese real yields have already moved in solidly positive territory, which may negate the need to raise interests in the short-term. The country also has a large amount of oil in stockpiles so it shouldn’t suffer as much from higher oil prices this year.

The bottom line

The Morgan Stanley CIO’s final thoughts on Chinese shares were as follows:

We recommend that investors consider using emerging-market weakness as an opportunity to add to China A-Shares, which are more leveraged to global pro-cyclical and value themes than expensive tech and social media names.

How to invest in Chinese shares?

Obviously there aren’t any large Chinese shares that you can invest directly into on the ASX.

However, there are some exchange-traded funds (ETFs) that do offer exposure to Chinese shares. For example, Betashares Asia Technology Tigers ETF (ASX: ASIA) – which is down almost 20% since the middle of February 2021 – gives exposure to plenty of Chinese shares.

Some of its Chinese holdings include Tencent, Meituan, Alibaba, JD.com, Pinduoduo, Netease, Baidu, Ke Holdings, Bilibili, Vipshop, Alibaba Health Information Technology, Autohome, GDS and Tencent Music Entertainment.

More reading

• 3 stellar ETFs for ASX investors to buy
• 2 tech ETFs delivering strong long-term returns
• How to counter the ASX 200’s Achilles heel
• 3 top ETFs for ASX investors to buy
• 2 top ETFs to buy for growth

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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More reading

• 2 rapidly growing ASX shares that could be strong buys in April
• Where to reinvest your Commonwealth Bank (ASX:CBA) dividends
• 5 things to watch on the ASX 200 on Tuesday
• 2 of the best ASX 50 shares to buy in April
• Why the Digital Wine (ASX:DW8) share price is on ice

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking to boost your portfolio with some growth shares, then you might want to look at the ones listed below.

Here’s why these quality ASX growth shares have been tipped as ones to buy right now:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. It is Australia’s leading online beauty retailer, with almost 800,000 active customers.

Adore Beauty has been growing at a rapid rate in recent years and particularly during FY 2021. For example, last month the company reported an 85% increase in revenue to $96.2 million and a 188% jump in EBITDA to $5.2 million.

The good news is that this is still only a very small slice of its overall market opportunity in the region. This gives the company a significant runway for growth over the next decade, especially given the relatively low penetration of online beauty sales compared to other Western markets.

Analysts at UBS appear positive on the company’s prospects. Last month the broker upgraded the company’s shares to a buy rating with a $6.20 price target.

NEXTDC Ltd (ASX: NXT)

Another ASX growth share to look at is NEXTDC. It is Australia’s leading data centre operator with a collection of nine world-class centres located across the country.

But it isn’t settling for that, the company is currently looking to expand its offering into both the Singapore and Tokyo markets. If this expansion is a success, it could provide NEXTDC with a huge market opportunity to grow into.

In the meantime, though, NEXTDC is generating significant revenue and earnings in the local market. For example, during the first half of FY 2021, the company posted a 27% increase in data centre services revenue to a record $121.6 million and a 29% increase in EBITDA to $65.7 million.

This was underpinned by a 33% lift in contracted utilisation to 71MW, a 16% lift in customers, and a 16% rise in interconnections.

Positively, more of the same is expected in the second half thanks to the accelerating shift to the cloud, which has led to very strong demand for capacity in its centres.

UBS is also a fan of NEXTDC. Its analysts currently have a buy rating and $15.40 price target on its shares.

More reading

• 3 high quality ASX shares to buy next month
• 2 stellar ASX shares to buy and hold
• Adore Beauty (ASX:ABY) calls for a more inclusive beauty industry
• 2 of the best ASX shares to buy this month
• How this exponential growth could send ASX 200 data centre shares soaring

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If you’re an eligible shareholder of Commonwealth Bank of Australia (ASX: CBA), then today you will be paid the banking giant’s fully franked 150 cents per share interim dividend.

While a good number of shareholders will be using these funds as a source of income, some might want to reinvest these dividends back into the share market.

With that in mind, I have picked out three ASX shares that could be good options for these dividends:

Altium Limited (ASX: ALU)

Altium could be a good option for these funds. It is an award-winning printed circuit board design software provider which has been growing very strongly over the last decade. The good news is that with demand expected to increase because of the artificial intelligence and Internet of Things markets, the next decade looks likely to be similarly successful. Particularly given how its platform is head and shoulders above the competition. Analysts at Credit Suisse are positive on the company and recently put an outperform rating and $35.00 price target on its shares.

CSL Limited (ASX: CSL)

If you’re looking for a blue chip ASX share to buy with these funds, then CSL could be a good option. Especially following a sharp pullback in the CSL share price in recent months due to concerns over COVID-19 headwinds. Once these headwinds ease, the company looks well-placed to resume its growth. Particularly given the strong demand for its therapies and vaccines and its lucrative R&D pipeline. Credit Suisse is a fan of CSL as well. It recently upgraded its shares to an outperform rating with a $315.00 price target.

Telstra Corporation Ltd (ASX: TLS)

If you’re interested in generating even more dividends, then you might want to look at Telstra. This telco giant has had a few tough years because of the NBN rollout, but the future is looking increasingly positive. This is thanks to the simplification of its business, cost cutting, and rational competition in the telco market. In light of this, Goldman Sachs believes Telstra’s dividend has bottomed. It expects the company to pay a 16 cents per share fully franked dividend for the foreseeable future. Based on the latest Telstra share price, this equates to a 4.7% dividend yield.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 2 of the best ASX 50 shares to buy in April
• ASX stock of the day: Integrated Research (ASX:IRI) shares up 7%
• Afterpay (ASX:APT) share price sinks despite new product launch
• TPG Chair resignation: Is this good news for the Telstra (ASX:TLS) share price?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and started the week with a disappointing decline. The benchmark index fell 0.35% to 6,799.5 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 futures pointing higher

The Australian share market looks set to rebound on Tuesday. According to the latest SPI future, the ASX 200 is poised to open 41 points or 0.6% higher this morning. This is despite it being a mixed night of trade on Wall Street. Late on, the Dow Jones is up 0.35% but the S&P 500 is down slightly and the Nasdaq index has fallen 0.65%. The forced liquidation of positions held by the multibillion-dollar family office Archegos Capital Management has been weighing on US shares.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices pushed higher despite the Suez Canal opening for business again. According to Bloomberg, the WTI crude oil price is up 0.85% to US$61.50 a barrel and the Brent crude oil price has risen 0.6% to US$64.96 a barrel.

Tech shares under pressure

Tech favourites such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) could have another tough day on Tuesday after US tech stocks sank lower overnight. This appears to have been driven by a small rise in bond yields on Monday. At the time of writing, the tech-focused Nasdaq index is down 0.65%.

Gold price sinks

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a difficult day after the gold price tumbled lower. According to CNBC, the spot gold price is down 1.35% to US$1,711.20 an ounce. Traders were selling the precious metal after the US dollar strengthened and bond yields rose.

Shares going ex-dividend

A number of shares are going ex-dividend this morning and could trade lower. This includes Atlas Arteria Group (ASX: ALX), Centuria Industrial REIT (ASX: CIP), and Cromwell Property Group (ASX: CMW). Elsewhere, eligible Commonwealth Bank of Australia (ASX: CBA) shareholders can look forward to being paid the banking giant’s 150 cents per share dividend this morning.

More reading

• ASX stock of the day: Integrated Research (ASX:IRI) shares up 7%
• Afterpay (ASX:APT) share price sinks despite new product launch
• Why is the Zip (ASX:Z1P) share price down 30% this month?
• Are there any bargains when everyone knows everything?
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Although the S&P/ASX 50 index may not be as well-known as the S&P/ASX 200 Index (ASX: XJO), it is arguably just as important.

This illustrious index is home to 50 of the largest companies on the Australian share market. These include household names and companies that are regarded as true blue chip shares.

Not all shares on the index are necessarily in the buy zone, but two that come highly rated are listed below:

CSL Limited (ASX: CSL)

The first ASX 50 share to consider is CSL. This leading biotechnology company manufactures and develops a portfolio of leading therapies and vaccines. This includes flu vaccines, immunoglobulins, and countless other plasma-based products. It also operates one of the most wide-reaching plasma collection networks.

While plasma collections have been tough during the pandemic due to social distancing, lockdowns, and government stimulus (people often donate for the money), this headwind is only expected to be temporary and not structural. In light of this, as the crisis eases, collections should become easier and its costs of sales will reduce again.

In light of this, a number of brokers believe the recent weakness in the CSL share price is an opportunity to buy the shares of one of Australia’s highest quality companies at an attractive price.

One of those brokers is Credit Suisse. Last week the broker upgraded CSL’s shares to an outperform rating with a $315.00 price target.

Goodman Group (ASX: GMG)

Another ASX 50 share to look at is Goodman Group. It is one of the world’s leading integrated commercial and industrial property companies that owns, develops, and manages industrial real estate across a total of 17 countries.

Goodman has been a very positive performer over the last decade. This has been driven by its outstanding portfolio of assets that have exposure to industries benefiting from structural tailwinds. These include booming areas of the economy such as ecommerce, logistics, and data centres.

It was thanks to the quality of its portfolio that Goodman recently released a strong half year result. For the six months ended 31 December, it reported a 16% increase in operating profit to $614.9 million. 

Macquarie was pleased with its first half update and is positive on its outlook. As a result, it recently upgraded its shares to an outperform rating with a price target of $20.39.

More reading

• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 3 high quality ASX shares to buy next month
• AstraZeneca COVID-19 vaccine trial data results in revised efficacy rate
• Where to reinvest your Telstra (ASX:TLS) dividends
• Is the CSL (ASX:CSL) share price on the road to recovery?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Digital Wine Ventures Ltd (ASX: DW8) share price has been brought to a halt in trading today ahead of a significant announcement. As such, shares in the company remain frozen at 14.5 cents, the trading price at Friday’s market close.

The news comes on the back of a remarkable month for the company that has seen its share price rise by an impressive 107%.

What’s happening?

Shares in the company are at a standstill pending the release of an announcement regarding a material partnership agreement. 

The trading halt will remain until this Wednesday or when the company releases its news. Whichever comes first.

Investors will have to remain patient until the announcement is made. However, the Digital Wine share price has been performing well as of late.

Last week, the company signed a significant agreement with global giant eBay Inc (NASDAQ: EBAY). The agreement will enable eBay shoppers to choose wines on its platform. They then are packaged and transported by Digital Wine’s WINEDEPOT platform.

This follows a major international deal in February when Digital Wine announced a partnership with Vivino, the “world’s largest wine app and marketplace”. 

About the Digital Wine share price

Digital Wine is a Sydney-based company that invests in early-stage, tech-driven ventures that can potentially disrupt the global beverage market. To this end, the company’s primary project is WINEDEPOT.

WINEDEPOT is engaged in the distribution of premium wine. It also undertakes bulk wine production and contract wine processing. The company’s focus on the Asian retail wine market allows its customers in China to purchase wine from around the world. All at the press of a button from phones, tablets or laptops.

The Digital Wine share price has had a great year on the ASX, up 1,350% over the last 12 months. As such, the company currently boasts a market capitalisation of around $240 million.

More reading

• How eBay has sent the Digital Wine (ASX:DW8) share price up 50%
• Why the Digital Wine (ASX:DW8) share price is up an astonishing 18%

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX growth shares can be a really good way to grow your portfolio over the long-term. April 2021 could be the time to jump on some of these opportunities.

Some investments have plenty of growth potential over the long-term, particularly if they’re exposed to growth opportunities outside of Australia.

These two ASX growth shares could be worth looking into:

Bubs Australia Ltd (ASX: BUB)

Bubs is one of the infant formula manufacturers on the ASX. It’s somewhat different because it specialises in goat milk infant formula.

Just like its larger competitor A2 Milk Company Ltd (ASX: A2M), Bubs suffered during the first quarter of FY21 because of a heavy impact of pantry de-stocking as well as much lower demand from daigou buyers.

However, Bubs is now seeing a strong turnaround in demand, starting in the second quarter of FY21. It saw group quarterly gross revenue of $12.8 million – up 36% quarter on quarter, though it was still down 12% on the prior corresponding period.

There were plenty of growth statistics reported in the three months to 31 December 2020. China cross border e-commerce (CBEC) sales went up 27% quarter on quarter, adult goat dairy gross revenue increased 45% and Bubs infant nutrition revenue grew 27%.

It’s making particularly strong progress in two key areas – Australia’s biggest retailers and with export markets outside of China.

The ASX growth share reported to investors that it’s the fastest growing infant formula manufacturer across Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Chemist Warehouse with combined retail scan sales at the checkout up 41% quarter on quarter.

Export sales to markets outside of China are showing the strongest signs of improvement, with growth of 194% quarter on quarter.  

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This has been one of the best-performing exchange-traded funds (ETFs) over the last five years with a net return per annum of 17.3%. That’s after the annual management fee cost of 0.49%.

These returns have been generated by a portfolio of US shares that is constructed by analysts from Morningstar that are looking for businesses with sustainable competitive advantages, or wide economic moats. To make it into the portfolio, the companies have to be trading at an attractive price compared to Morningstar’s estimate of fair value after going through a rigorous equity research process.

As of 26 March 2021, some of the biggest positions were: Facebook, General Dynamics, Gilead Sciences, Alphabet, Guidewire Software, Intel, John Wiley & Sons and Kellogg Co.

In terms of the sector weightings, more than five industries have exposure above 10%: information technology (19%), financials (18.6%), health care (17.9%), industrials (11.9%) and consumer staples (10.2%).

More reading

• 4 reasons the Bubs (ASX:BUB) share price has been crushed and just hit a 52-week low
• Top brokers name 3 ASX shares to sell next week
• 2 ASX shares that may be hit by Australia’s declining birth rate
• A2 Milk (ASX:A2M) shares and one other slapped with sell ratings
• Leading brokers name 3 ASX shares to sell today

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended BUBS AUST FPO and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Due to the strong potential returns on offer at the small side of the market, having a little exposure to it could be a good thing for a portfolio.

With that in mind, I have picked out two small cap ASX shares that have been named as buys. They are as follows:

MNF Group Ltd (ASX: MNF)

MNF Group is a leading provider of Voice over Internet Protocol (VoIP) technology to businesses and consumers.

Its technology allows users to make telephone calls over the internet. Which, with the NBN rollout removing traditional telephone lines, is an increasingly important service.

MNF has been growing its recurring revenue at a solid rate for a number of years. This has continued in FY 2021, with first half recurring revenues increasing 15% to $55.7 million.

Positively, MNF look well-placed to continue this trend in the coming years. This is thanks to structural tailwinds and its expansion into Asia.

With its half year results, management advised that it is close to launching in Singapore and is looking into entering a further six markets in the region.

Morgan Stanley is positive on the company. It currently has an overweight rating and $6.30 price target on its shares.

SILK Laser Australia Limited (ASX: SLA)

SILK Laser is a growing laser, skin care, and cosmetic injections company.

Last month SILK released its half year results and revealed that its growth has continued despite the pandemic.

For the six months ended 31 December, SILK reported a 62% increase in network sales to $44.9 million, a 78% lift in revenue to $30.6 million, and a 305% jump in net profit to $4.7 million.

Underpinning this growth was strong like for like sales and the addition of four new clinics. This brought SILK’s network to a total of 56 clinics across the country. Pleasingly, this is still well short of its current target of 150 clinics, which gives it a long runway for growth.

Macquarie is a fan of the company. It currently has an outperform rating and $9.50 price target on its shares.

More reading

• 3 small cap ASX shares to watch in 2021
• 2 ASX tech shares rated as buys by brokers
• These 3 ASX shares have just stormed to record highs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Tabcorp Holdings Limited (ASX: TAH) shares slipped today after the company announced a strategic review of its operations. At the close of trade today, the Tabcorp share price was trading at $4.69, down 2.7%

Let’s take a closer look at what the company announced.

Tabcorp share price slides after update

In early February, the Tabcorp share price went flying when news began circulating about a potential buyout of part of the gaming giant’s business. A media report in The Australian revealed that Tabcorp received a proposal to break up the $9 billion betting company. However, despite a release at the time stating the company was assessing the proposals and would update the market in due course, Tabcorp has remained tight-lipped on the matter. 

Today, however, Tabcorp confirmed the company had received a number of “unsolicited approaches” and proposals. Furthermore, it was revealed that the offers were predominantly for the company’s wagering and media businesses, which were valued at $3 billion in the offer.

In review, the Tabcorp board has decided the proposals are not of sufficient value. As such, the offers will be rejected.

However, in light of the interest, the company has decided to perform a strategic review of the company. This is in order to assess structural and ownership options to maximise the value of the company for the shareholders.

Could wagering and media still be sold?

Notably, the company made clear there was still a possibility that its wagering and media division could be sold off. This could be done through a third party or even as a demerger.

A demerger would involve the separation of the wagering and media businesses or its lottery and keno division. Consequentially, the company is also reviewing its gaming services business.

Management comments

Tabcorp chair Steven Gregg said of the review:

The assessment of Tabcorp’s strategic and ownership options includes, but is not limited to, a demerger or sale of one or more of our businesses.

Our clear objective is to ensure that we fully maximise the value of Tabcorp’s gambling entertainment businesses for our shareholders.

What now

With no timeframe allocated to the review, shareholders will have to remain patient for the next parcel of information.

The review is being undertaken by the Tabcorp board of directors. In the meantime, the search for a new CEO has been put on hold until the review is completed.

More reading

• Compared! How are ASX gaming share prices performing?
• Tabcorp (ASX:TAH) share price falls as demerger speculation continues

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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