According to the China Market Strategy report released by UBS on April 7, about 61 per cent of the MSCI China Index stocks have announced results for the 2021 fiscal year, of which 4 per cent are lower than expected, mainly due to higher costs. Based on the rise in global commodity costs in the first half of this year, it is estimated that the market peers will revise their profit forecasts for Chinese stocks. The bank lowered its annual earnings growth forecast for the MSCI China Index in 2022 from 9 per cent to 7 per cent, giving the MSCI China Index a target of 83 points this year (a potential rise of 12 per cent). At the same time, it removed the "reduced" view on the oil, gas and raw materials industry and reiterated its "increased" view on the mainland Internet industry. UBS said that based on uncertain factors, including the social distance measures affected by COVID-19 's epidemic, high commodity prices, the downturn in the mainland property market and the slowdown in global economic growth, the bank considered it appropriate to adopt a more defensive attitude towards Chinese stocks in the short term. and added a number of value stocks to the bank's portfolio of Chinese stocks, such as$China Shenhua Energy (01088.HK) $, Dongfang Yuhong (002271.SZ), Sunshine Power supply (300274.SZ) and Guizhou Moutai (600519.SH).