UBS Securities Meng Lei: Short-term "de-risking" may be nearing an end.

How will geopolitical risks affect the A-share market in the short term? Meng Lei, a China stock strategy analyst at UBS Securities, pointed out that from a macro perspective, China's dependence on oil and natural gas is relatively low compared to other major economies in the world. From the perspective of stock indices, the short-term surge in oil prices seems to have limited impact on the major indices of the A-share market. The implied volatility of major A-share indices in recent times is also lower than during the escalation of global trade conflicts in April 2025, as well as other major overseas stock indices. It is judged that the process of "de-risking" may be nearing its end in the short term.