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

Odaily: UBS's latest research report maintains its "attractive" view on A-shares, believing that the recent market weakness has improved the risk-reward and has not materially changed its positive judgment on the earnings outlook. Rising US bond yields and renewed geopolitical concerns, while weighing on some tech and materials stocks, have so far had a limited impact on fundamentals. 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 prefers selected leaders in technology and advanced manufacturing, innovative healthcare companies, and export companies with global competitiveness, while also favoring high-quality dividend-paying companies, especially large Chinese banks.