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Corporate earnings might contribute more to equity gains this year, rather than valuation expansion, as profit growth of 10 per cent was expected, they said.
“Chinese assets’ appeal will further increase this year because of a sharpened focus on diversified investments,” said Thomas Fang, head of China global markets at UBS. “China is expected to become an important market for multi-allocations by global capital. China stocks will have a bumper year on innovation capability, ample liquidity policy support and potential inflows.”
That assessment underscored how investors’ preference for Chinese stocks over US equity had extended into 2026, as Beijing’s push for tech self-reliance is projected to boost the weightings of emerging strategic industries on the mainland.
Chinese stocks beat US equities last year, as US exceptionalism that powered years of strong equity performance abated, following initial signs of an AI bubble emerging and the Fed’s latest interest rate cuts that encouraged increased investment in Asia-based shares.
