UBS Securities Meng Lei: A-shares expected to sustain steady rebound this year

Odaily Planet Daily News In his latest outlook, Meng Lei, China equity strategy analyst at UBS Securities, has raised overall earnings expectations for A-share companies, projecting that aggregate earnings of all A-share companies could grow by 15% in full-year 2026.

Meng noted that driven by earnings recovery, inflow of incremental capital, and the global technology narrative, A-shares are likely to sustain a steady rebound this year. However, he cautioned that the current A-share market may face two major uncertainties going forward: first, geopolitical risks, U.S. Treasury yields, and oil price volatility could affect valuations of rate-sensitive tech sectors; second, given that public funds are heavily overweight in the tech sector, there may be pressure from "principal recovery redemptions," which could constrain the rebound's upside. (Jin Shi)