UBS: China's Market Correction May Be Overdone, High-Quality AI Stocks Present Buying Opportunity
2 day ago / Read about 0 minute
Author:小编   

The UBS Wealth Management Chief Investment Office (CIO) released its view stating that the current correction in China's market may be overdone, offering investors an opportunity to increase their holdings of high-quality Chinese AI stocks at lower valuations. Currently, the 12-month forward price-to-earnings ratio for China's internet sector stands at approximately 13 times, nearing levels seen before the release of DeepSeek, with current valuations not fully reflecting the AI investment and monetization achievements of the past year. UBS Wealth Management forecasts that the MSCI China Index will see EPS growth of around 13% this year, with the technology sector's earnings growth potentially reaching 20% to 25%. Meanwhile, ongoing proactive policy support for AI development and technological innovation, coupled with improving market sentiment and fundamentals, is expected to gradually drive a rebound in earnings, valuations, and positioning.