UBS(US:UBS) Shang Hai Zheng Quan Bao·2026-01-13 23:31Group 1 - The core theme of the 26th UBS Greater China Conference is "New Frontiers: Recognizing Changes, Seeking Growth" with over 3,600 attendees, reflecting a 10% increase from last year, and a 32% rise in participants from outside the Asia-Pacific region, indicating growing global investor confidence in the Chinese market [1] - UBS forecasts that corporate profit growth, attractive valuations, and continuous inflow of domestic and foreign capital will support further upward movement in the Chinese stock market by 2026, with a more favorable market environment expected in the first half of the year [1][3] - The focus on AI as a key investment theme continues, with growth styles expected to outperform, while large and small-cap styles are anticipated to become more balanced [1][7] Group 2 - Active overseas funds are beginning to increase their holdings in Chinese assets, with the proportion of holdings in portfolios of the top 40 global investment institutions reaching a new high since 2023, and expectations for this to reach a historical high in 2026 [2] - The Chinese stock market has shown strong rebound trends since 2025, with significant milestones achieved, driven by a new wave of technological revolution and industrial transformation [2] - UBS maintains an overweight rating on the Chinese market, emphasizing that favorable driving factors will continue into 2026, including support for innovation sectors and policies favoring private enterprises and capital markets [3][4] Group 3 - A-share earnings growth is expected to rise from 6% in 2025 to 8% in 2026, with a shift in growth structure as non-financial enterprises are anticipated to contribute more significantly to earnings due to supportive policies and economic recovery [6] - The equity risk premium (ERP) in the A-share market remains above historical averages, indicating potential for further valuation recovery compared to other global markets [6] - The AI sector is highlighted as a core investment theme, with China positioned as a global leader in AI, providing significant risk diversification for international investors [7]