UBS: The Chinese market correction may have already been excessive, and high-quality AI stocks are now presenting a deployment opportunity

DeepFlowTech · 2026-03-31T05:34:30+00:00

UBS Wealth Management believes that the Chinese market has overcorrected, and investors can increase holdings of quality AI stocks at low valuations. The MSCI China Index EPS growth is expected to be around 13%, with the technology sector reaching 20%-25%. Policies actively support AI development, and future profits and valuations are expected to rebound.

DeepFlowTech

2026-03-31 05:34:30

Abstract generation in progress

Deep Tide TechFlow message. On March 31, according to data from Jintou, an institutional viewpoint was issued by the investment director’s office (CIO) of UBS Wealth Management, which believes that the current adjustment in the China market may have been overdone. Investors may have an opportunity to add quality China AI stocks at lower valuations. The current 12-month forward price-to-earnings ratio for the China internet industry is about 13x, which is close to the level before DeepSeek’s release. The current valuation has not yet fully reflected the returns brought by AI investment and monetization over the past year.

UBS Wealth Management expects that the MSCI China Index’s EPS growth rate this year will be about 13%, and that the profit growth rate for the technology sector could reach 20% to 25%. In addition, policies remain supportive of AI development and technology innovation. As market sentiment and fundamentals improve, earnings, valuations, and positioning are expected to recover gradually. (Securities Times)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes