Following Goldman Sachs, UBS also likes the Chinese stock market and expects a 20% increase.

UBS Securities said that as inflation expectations rise and better earnings, the Chinese stock market may rise another 20%. Surveys show that due to rising input costs, more Chinese companies plan to raise prices this year, and there are also signs of improvement in overcapacity issues. A re-inflationary environment will drive valuation reassessments and earnings growth, and may lead to a 20% increase in the MSCI China Index. Analysts predicted in November last year that the MSCI China Index would reach 100 by the end of 2026, and other major banks are also optimistic about the Chinese market due to AI and policy measures. Goldman Sachs estimated in January that the Chinese stock index would rise by 20%.