As Australia prepares for the upcoming Australia Day celebrations on January 26, China is shutting down ahead of the week-long Chinese New Year, or Lunar New Year, national holiday, which starts on January 25.

This is the Year of the Rat, which fittingly for the start of a new decade, is the first of the 12 animals that feature on the Chinese zodiac.

Rats are seen as a sign of wealth and surplus in Chinese culture, while people born in this year are considered clever and quick thinkers — traits that will no doubt be welcome in the currently challenging market environment.

In China, the long holiday will see millions of Chinese leave the country’s major cities to visit family domestically and abroad or go on holidays.

Indeed, Bloomberg estimates that even with the complications resulting from the coronavirus outbreak, some 3 billion trips will be made this year.

China’s growing affluence also means that Chinese tourists tend to be big spenders.

While there is little doubt that the recent bushfires have impacted tourism numbers, China was the largest source for tourists to Australia with an estimated 120,200 Chinese visiting Down Under.

Stockhead has identified 30 non-resource companies with exposure to China across a broad range of industries.

Here is a list of non-resources China-focused stocks:

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Ticker Name Price % Change Market Cap
BUB BUBS AUSTRALIA LTD 0.935 117 $529.5M
CLV CLOVER CORP LTD 2.74 89 $445.7M
DEM DE.MEM LTD 0.255 79 $43.8M
HCT HOLISTA COLLTECH LTD 0.08 38 $18.8M
DW8 DIGITAL WINE VENTURES LTD 0.0075 34 $9.5M
A2M A2 MILK CO LTD 15.19 25 $10.9B
WLD WELLARD LTD 0.058 16 $30.8M
FLC FLUENCE CORP LTD 0.41 15 $268.7M
AVG AUSTRALIAN VINTAGE LTD 0.5 8 $140.4M
HUO HUON AQUACULTURE GROUP LTD 4.52 -6 $389.5M
OGA OCEAN GROWN ABALONE LTD 0.13 -9 $27.1M
BUG BUDERIM GROUP LTD 0.235 -10 $20.2M
AWY AUSTRALIAN WHISKY HOLDINGS L 0.037 -10 $60.3M
SM1 SYNLAIT MILK LTD 8.38 -12 $1.5B
S66 STAR COMBO PHARMA LTD 0.46 -17 $39.8M
MCA MURRAY COD AUSTRALIA LTD 0.16 -18 $89.6M
NAM NAMOI COTTON LTD 0.32 -24 $42.8M
AHF AUSTRALIAN DAIRY NUTRITIONAL 0.098 -25 $36.4M
BXN BIOXYNE LTD 0.017 -26 $12.8M
SKN SKIN ELEMENTS LTD 0.015 -27 $2.6M
BEE BROO LTD 0.016 -32 $11.8M
CSS CLEAN SEAS SEAFOOD LTD 0.725 -33 $64.8M
JAT JATENERGY LTD 0.055 -37 $51.1M
AU8 AUMAKE INTERNATIONAL LTD 0.135 -39 $44.9M
EHH EAGLE HEALTH HOLDINGS LTD 0.11 -48 $38.4M
LON LONGTABLE GROUP LTD 0.155 -49 $33.1M
FOD FOOD REVOLUTION GROUP LTD/TH 0.072 -53 $51.4M
ABT ABUNDANT PRODUCE LTD 0.067 -67 $5.7M
MPH MEDILAND PHARM LTD 0.25 25 $78.2M
NUC NUCHEV LTD 3.69 42 $166.1M

Most of these companies have seen their share price slide over the past year, but companies involved in the milk and health products segments have enjoyed considerable success.

Given the popularity of Australian baby formula in China, where it is seen as a premium product, it is unsurprising that Bubs Australia (ASX:BUB) tops the list with its shares up 117 per cent over the past year.

Bubs is a major global producer of goat’s milk powder and also offers organic cow’s milk powder and organic baby food.

It reported a 154 per cent increase in gross revenue to $46.8m in the 2019 financial year.

Fellow goats milk producer Nuchev Limited (ASX:NUC), which listed in December 2019, has seen its shares jump 42 per cent from its IPO price of $2.60.

Food supplement manufacturer Clover Corporation (ASX:CLV) has also benefited from its exposure to the Chinese market, with shares rising 89 per cent over the year.

Its products include a range of foods, drinks and nutraceuticals that contain Omega 3 fatty acids with no negative impacts on smell and taste, as well as infant formula.

Holista Colltech’s (ASX:HCT) health products and low glycemic index noodles have also found a ready market in China, a fact that has sent its shares up 38 per cent.

A2 Milk (ASX:A2M) is another milk products producer that has found favour with investors.

The major manufacturer, which only makes its products from milk containing just the A2 protein that is both easier to digest and healthier, has seen its shares rise 25 per cent over the year.

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