UBS: Recent Pullback Improves Risk-Reward, A-Shares Remain Attractive

Odaily News: UBS's latest research report maintains an "attractive" view on A-shares, believing that the recent market weakness has improved risk-reward and has not materially changed its positive judgment on 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 been limited so far. Earnings forecasts for the CSI 300 Information Technology sector in 2027 continue to be revised upward, strengthening UBS's confidence ahead of the third-quarter earnings season. In terms of allocation, UBS prefers selected leaders in technology and advanced manufacturing, innovative healthcare companies, and export enterprises with global competitiveness, while also favoring high-quality dividend-paying companies, especially large Chinese banks.