UBS Wang Zhonghao: There is a lot of room for foreign capital to return, and AI may become a hot topic again.

At the media briefing on May 21st, Wang Zonghao, the head of China stock strategy research at UBS Investment Bank, believes that from the perspective of index rebound, the valuation of the Chinese stock market still has a lot of room compared to other markets. The breakthroughs in the technology field in our country will continue to increase market confidence in the medium to long term, and the fundamentals are showing a slow recovery trend. According to UBS's calculation of foreign holdings, the ratio of foreign allocations to Chinese assets is still at a historically low level, leaving a significant room for foreign capital inflow. He stated that in the future, they will continue to use a barbell strategy, but will lower the position of high dividend stocks in the preference order. With reduced concerns about financial decoupling, it is expected that the AI theme may once again become investors' preferred focus, and internet companies are the hottest way to invest in this theme. Domestic substitution may still be another important theme, and the A-share TMT sector remains the best direction to invest in this theme.