Chinese equities remain appealing, with UBS highlighting AI-related themes, brokerages, and high-dividend stocks as attractive opportunities, even after US President Donald Trump last Friday announced a potential 100 percent tariff on Chinese goods.
MSCI’s China index has risen about 36 percent from recent lows, and UBS expects some short-term profit-taking but sees broader market support.
The bank noted the CSI 300 is likely to be more resilient, having outperformed during April’s sell-off and potentially benefiting from state-backed support, while US-listed Chinese stocks may underperform, according to Wang Zhonghao, head of China Stock Strategy Research at UBS Investment Bank.
UBS said that sectors likely to face the heaviest selling pressure include data centers, internet, tech hardware, automotive and parts, and biotechnology, while defensive and domestic-focused sectors such as utilities, transportation, construction, and food and beverage are expected to outperform.
STAFF REPORTER
