UBS Group's Wang Zonghao: International investors generally show strong interest in Chinese equities.

Gelonghui, September 30th | Wang Zonghao, Head of China Equity Strategy Research at UBS Group's Investment Bank, recently stated that based on multiple roadshows conducted over the past month in the United States and Asia, international investors have shown strong interest in Chinese equities overall. An increasing number of investors are embracing a more optimistic outlook for the market. However, some investors who have already realized profits feel slightly uneasy about the recent economic weakness. Nevertheless, considering the robust market momentum and potential inflows from retail investors, these investors are unlikely to reduce their China positions in the short term. Wang Zonghao further noted that due to weak economic fundamentals, many investors still view China as a tactical trading opportunity for now. Given continued underweight positioning by foreign investors, valuations relatively cheaper compared to global markets, and expectations of further interest rate cuts by the US Federal Reserve, there remains potential for additional foreign capital inflows into the Chinese stock market. The topic of "anti-involution" was a key focus in most meetings, with investors showing interest in China’s AI/technology development and capital return trends. UBS Group’s overweight stance on A-share TMT and brokerage sectors also garnered significant investor attention.