UBS AG says it’s time to start cutting Chinese profit forecasts again.
Chen Li, the lender’s chief China equity strategist, estimates companies in the nation’s CSI 300 Index will post a 3 percent drop in earnings this year, versus consensus forecasts for a 14 percent gain. As analysts downgrade projections to account for a weak property market and depreciating yuan, China’s biggest non-bank stocks may extend this year’s drop to 20 percent, Chen says.
