UBS Lifts Chinese Stocks to Overweight in Rare Upgrade Call
- Swiss bank also upgrades Hong Kong, downgrades Taiwan, Korea
- Early signs of pickup in consumption seen positive for stocks
This article is for subscribers only.
UBS Group AG raised its recommendation on a key Chinese stock index to overweight in a rare upgrade call this year, underscoring the tentative optimism that the market is finally on the mend.
“The largest stocks in the China index have been generally fine on earnings and fundamentals,” strategists including Sunil Tirumalai wrote in a Tuesday note. UBS is now even more positive on earnings given early signs of a pickup in consumption, with the possibility of household savings flowing into spending and eventually markets, the note said.