UBS Upgrades China Stocks to Overweight as Crackdown Passes Peak
- Says Chinese stocks priced in policy and regulatory risks
- Sees corporate earnings bouncing back in the coming year
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UBS Group AG upgraded its recommendation on Chinese equities to overweight from underweight, saying tighter economic regulation has been priced in, while corporate earnings and valuations are set to improve.
Strategists Niall MacLeod, Karen Hizon and Jiamin Shen made the U-turn after maintaining a downbeat call for about a year and a half as China’s economy rose out of its Covid-induced trough before slowing again.