China's earnings season is wrapping up. How to play what's next

Major Chinese companies’ latest quarterly reports reinforce how the local market is one for stock pickers. “There has been outperformance, but it has been unique to certain companies,” Lorraine Tan, director of Asia equity research at Morningstar, said in a phone interview with CNBC Pro. “The trend is, across the board, more so weakness reflecting macro trends, and guidance is cautious.” “The individual companies that have outperformed have done so because they have a much more resilient mix of products, or business market positions,” she said. Of note, Alibaba and Tencent each reported capital expenditures that roughly doubled from a…