UBS Securities: Optimistic about the A-share outlook for the whole year, market sentiment is not overly hot at present.

UBS Securities analyst Meng Lei stated at a Greater China seminar on Tuesday that he is optimistic about the A-share market for the whole year. He mentioned that the current market sentiment is above the medium level and has not reached an overheating point. Meng Lei predicted that A-share earnings growth will accelerate to around 8% in 2026. He is bullish on growth and cyclical styles, and believes that small and mid-cap styles will be more balanced compared to last year. In the first quarter, A-shares may experience a Lunar New Year rally. Since the beginning of the year, global stock markets have been on the rise due to loose global liquidity boosting valuations. UBS China stock strategy research director Wang Zonghao expressed that there are still challenges in the Chinese macroeconomy, but he remains optimistic about the Chinese stock market. As long as the innovation sector continues to perform well, it can drive the overall stock market. In terms of sectors, AI is a major theme, with most institutional investors believing that AI is the future and China and the United States are leading countries in this area. Wang Zonghao is bullish on domestic hardware companies in China, especially in semiconductors, as well as beneficiaries in internet, securities, photovoltaic, and overseas investment sectors.