UBS is bullish on Chinese assets in 2026: attractiveness is further increased, market is expected to continue rising

"In 2025, the world is intertwined between innovation development, political unrest, and market uncertainty. Focusing on the Asia-Pacific region and China, they are not only participants in the global story but also writing the next new chapter. The Asia-Pacific region is expected to seize the new round of dividends brought by AI: the Chinese technology sector is accelerating innovation in 2025 and making significant progress in all aspects of the AI value chain." said Ralph Hamers, CEO of UBS Group, at the 26th UBS Greater China Conference held on January 13. Dongming Fang, Chief of UBS Global Financial Markets China, believes that strong innovation capabilities, supportive policies, abundant liquidity, and potential inflows of funds from domestic and foreign institutional investors are expected to support another good year for the Chinese stock market. "Combined with upward valuation space, macro policy support, and forecasted overall A-share profit growth of about 8% in 2026, the A-share market is expected to further rise in 2026," said Meng Lei, UBS Securities China Stock Strategy Analyst.