GO
| HSI1 | 25,116.85 | 0.00 | -- |
| HSCEI1 | 8,340.83 | 0.00 | -- |
| Back Zoom + Zoom - Block Traded | |
|
UBS Raises Internet Sector Allocation Ranking to No. 2, Behind Only Semiconductor Equipment
2026-08-13 16:05:23 UBS Wealth Management Chief Investment Office Asia Pacific stated that the July Politburo meeting called for the implementation of more proactive fiscal policies and left room for further easing if growth does not improve. The bank expects China's fiscal spending to accelerate in 2H26, including the deployment of RMB800 billion in new policy-based financial instruments. About 60% of the full-year RMB11.9 trillion government bond issuance quota remains unused. UBS maintained its forecast for China's GDP growth at around 4.5% this year unchanged. Among allocations to China tech stocks, UBS raised the internet sector ranking from fifth to second place, behind only semiconductor equipment. The bank expects upcoming corporate results to provide clearer guidance on accelerating cloud business growth, AI monetization and core business margin trends. Continued share buybacks, potential AI asset spin-offs and a stabilizing regulatory environment are also expected to support internet stocks. UBS said internet stock valuations remain near historical lows, while improving earnings expectations should help narrow valuation discounts. The bank continues to view semiconductor equipment as its top tech sector pick, expecting the segment to benefit from domestic substitution, technological advances and strong demand from domestic foundries and memory chip makers. In addition, the bank is also optimistic on power equipment, healthcare, as well as high-dividend defensive stocks including banks, insurers, utilities and consumer staples. On bonds, the bank favors Asian investment-grade bonds and high-yield bonds, with a preference for short- to medium-term maturities to reduce the impact of interest-rate fluctuations while generating stable coupon income. On foreign exchange, UBS maintained its "attractive" view on the RMB, expecting USD/RMB to fall toward 6.7 before year-end and further decline to 6.5 by mid-2027. The bank believes RMB performance will still depend on the USD trend. If the Federal Reserve maintains a hawkish stance or raises interest rates, the pace of RMB appreciation may slow. If the USD weakens, momentum for RMB appreciation will strengthen further. (gc/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |