UBS Wealth Management Maintains "Attractive" View on Chinese Stocks, Sees MSCI China Index Reaching 102 Points by Year-End

Stock News
01/27

UBS Global Wealth Management's Chief Investment Office has released a new report stating it continues to hold an "attractive" view on Chinese stocks. The earnings growth forecast for the MSCI China Index this year is expected to rebound significantly to 13.6%, up from 2.5% last year, primarily driven by technology stocks. Following a strong rise in 2025, and supported by favorable policies, structural growth drivers, and a recovery in investment sentiment, UBS believes the MSCI China Index could reach 102 points by the end of 2026, representing high double-digit returns. Regarding other markets, the firm maintains an "attractive" view on Asia ex-Japan equities. Driven by multiple factors, stocks in this region are poised to deliver solid returns. Singapore is set to benefit from its "value enhancement" strategy, and the regional AI theme is also worth watching. Investors seeking catch-up opportunities might consider India and Indonesia, where earnings expectations are projected to rebound significantly. Investment opportunities include: Singapore: opportunities arising from "value enhancement" and selected high-dividend stocks. Recent government initiatives are expected to revitalize the country's stock market in 2026. South Korea and Taiwan Province of China: selected individual stocks under the AI theme. The outlook is positive for leading semiconductor companies, component suppliers, network solution providers, and cooling infrastructure-related firms. India and Indonesia: the financial sector is already showing signs of expansion and recovery. Earnings for some consumer companies are also expected to accelerate this year.

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