UBS Group believes that due to the recovery of downstream sector profit margins and the low profit base, the earnings per share of the csi 300 index will increase from 1% this year to 6% next year. UBS Group's China stock strategist Meng Lei stated that the decline in risk-free interest rates, clearer fiscal policy support, strong net inflows from individual investors, and the entry of 'patient capital' into the market may help reduce equity risk premiums. He believes that the recent market pullback indicates that the geopolitical uncertainties are starting to be priced by the A-share market. In addition, Meng Lei is bullish on sectors benefiting from ample market liquidity and favorable policies, including electronics, household appliances, telecommunications, defense military industry, and insurance.