UBS: Recent pullback improves risk-reward; A-shares remain attractive

Odaily reports: UBS's latest research note maintains its "attractive" view on A-shares, arguing that the recent market weakness has improved the risk-reward profile without materially changing its positive assessment of the earnings outlook. Although rising US bond yields and renewed geopolitical concerns have weighed on some tech and materials stocks, the impact on fundamentals has so far been limited. Earnings forecasts for the CSI 300 Information Technology sector for 2027 continue to be revised upward, strengthening UBS's confidence ahead of the third-quarter earnings season. On allocation, UBS favors select leading tech and advanced manufacturing companies, innovative healthcare companies, and globally competitive exporters, while also favoring quality dividend-paying companies, especially China's large banks.