UBS published a report that is more optimistic about the outlook for domestic stocks in the fourth quarter in China, and more optimistic about the prospects for Kweichow Moutai (600519-CH), Li Ning (02331-HK), L'Occitane (00973-HK), Parkson (03368-HK), and Baozi (00589-HK). The UBS report stated that it believes the mainland is in an inflationary environment and is more optimistic about the outlook for domestic stocks in the fourth quarter, mainly due to holiday factors, improved gross margin, and improvements in the building market during the September to October period. At the same time, due to mainland residents' concerns about food and product quality, raw material prices are expected to rise, but it will have an impact on catering companies, and the cost structure is expected to continue in 2011. Therefore, the bank is cautious about the prospects of four mainland consumer stocks and export stocks, and has given “selling” ratings, including Bawang (01338-HK), Huiyuan (01886-HK), Gome (00493-HK), and Li Feng (00494-HK). UBS's bullish domestic stocks include: stock name/investment rating/target price Kweichow Moutai (600519-CH) /purchase/195 yuan. Li Ning (02331-HK) /buy/29 yuan. L'Occitane (00973-HK) /20 yuan. Parkson (03368-HK) /buy/18.07 yuan. Baozi (00589-HK) /buy/27.2 yuan. Domestic and export stocks that UBS is less optimistic about include: stock name/investment rating/target price dominance (01338-HK) /selling/$3.2. Huiyuan (01886-HK) /sell/4.9 yuan. Gome (00493-HK) /sell/2.16 yuan. Li Feng (00494-HK) /sell/33 yuan.