**Maximizing Gains: Jim Cramer's Top Picks Amid China's Stimulus Measures**

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30/09/2024 23h46

**Jim Cramer Recommends Apple, Starbucks, and Alibaba Amid Chinese Economic Stimulus**

China's recent efforts to revitalize its economy have triggered a notable upswing in its stock market, and CNBC's Mad Money host Jim Cramer has pinpointed specific stocks that he believes could benefit from these developments. In a recent post on X, formerly known as Twitter, Cramer highlighted Apple, Inc. (NASDAQ: AAPL), Starbucks Corp. (NASDAQ: SBUX), and Alibaba Group Holding Limited (NYSE: BABA) as his top picks for those looking to capitalize on China's stimulus measures.

"The Chinese are, once again, stimulating and everyone's back," Cramer remarked. His picks come as the Chinese government and the People's Bank of China have rolled out a series of economic interventions designed to jumpstart growth and instill market confidence.

On Monday, the Chinese Shanghai Composite Index saw a significant rise, settling 8.06% higher at 3,336.50. This surge followed disappointing results from the Caixin manufacturing and services sector purchasing managers' indices. Since September 20, the index has experienced an impressive gain of nearly 22% and is now up just over 12% for the year.

The People's Bank of China recently announced a forthcoming cut to the reserve requirement ratio by 50 basis points, a move anticipated to free up roughly 1 trillion yuan ($142 billion) for new lending, according to Reuters. Additionally, there are hints of further reductions ranging from 0.25 to 0.50 percentage points. Other measures include lowering the seven-day repo rate by 0.2 points, the interest rate on a medium-term lending facility by 30 basis points, and loan prime rates by 20-25 basis points.

Apple's significant dependency on the Chinese market, both for its supply chain and consumer base, makes it a prime candidate for benefiting from these economic efforts. Despite its attempts to diversify manufacturing, China remains a central hub for Apple's production. In recent times, Apple has faced increased competition domestically, particularly from Huawei, which has made a robust comeback in the Chinese smartphone market.

Similarly, Starbucks holds a strong foothold in China but has seen its sales impacted by weaker economic fundamentals. In the June quarter, the company experienced a 14% drop in same-store sales in China, in stark contrast to a mere 2% decline in the U.S. market.

For Alibaba, the Chinese economy's revival is crucial since its e-commerce operations predominantly rely on domestic consumer spending. Beyond Cramer's recommendations, other multinational corporations with significant exposure to China, such as Tesla, Inc. (NASDAQ: TSLA), may also see benefits from the country's economic recovery.

Reflecting this overall positive sentiment, the iShares MSCI China ETF (NYSE: MCHI) rose 3.35% to $52.70 in premarket trading on Monday, underscoring investor optimism towards China's economic trajectory.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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