CHINESE firms with overseas businesses and foreign currency assets will benefit as the yuan’s depreciation accelerates after Donald Trump’s victory, according to Goldman Sachs.

    The technology industry could profit the most from a weaker yuan because more than 35 percent of company revenues come from abroad, said Kinger Lau, Hong Kong-based chief China equity strategist at Goldman Sachs. Energy and industrial businesses will benefit as well with non-yuan sales accounting for more than 15 percent of their overall income last year. Exporters could advance, although it may be harder for them to excel now that Trump will be U.S. president, said Lau.

    “Our conviction for firms with foreign currency financial assets to outperform is even higher after Trump’s election victory, as our conviction to expect a weaker currency is stronger,” said Lau. “The Trump presidency means some pure exporters could have a little bit of difficulty to outperform because of the trade concerns in the short term.”

    The yuan’s depreciation is a double-edged sword for Chinese companies. While a lower exchange rate makes exporters and firms with foreign assets more competitive, too quick a slide would prompt investors to pull money out of equities.

    Lau didn’t comment on individual stocks. In a report last month, Goldman recommended seven firms that profited from foreign exchange gains in the first half of this year.

    Its picks included China Resources Land Ltd., which posted 224 million yuan (US$32.7 million) in foreign exchange gains in the first half of this year, and energy firm Huaneng Renewables Corp. (SD-Agencies)