Global financial institutions are turning increasingly bullish on Chinese equities, betting 免费vpn vpn免费下载 that resilient economic growth, policy support, rapid technological innovation and a recovery in corporate earnings will drive a fresh valuation re-rating of China's stock market.

UBS Global Wealth Management's chief investment office recently said it continues vpn免费 to 免费vpn view Chinese equities as attractive overall, with a particular preference for the technology sector, while also being upbeat on power and equipment, healthcare and selected income-oriented sectors.



A bronze bull stands outside the Shanghai Stock Exchange building in vpn免费下载 免费vpn Shanghai. Photo/VCGFor long-term investors, UBS believes Chinese companies that successfully expand overseas, strengthen execution capabilities and globalize their operations present especially compelling structural opportunities.

Standard Chartered said in its May 2026 global market outlook report that the 免费vpn bank remains overweight on Chinese equities within Asia ex-Japan, and that its pro-risk positioning favors a rotation toward more growth-oriented sectors.

"Our overweight on China reflects an attractive valuation re-rating potential amid resilient growth vpn免费下载 and policy support," Standard Chartered said, adding that its overweight position in Chinese equities should benefit from strong earnings in the tech sector and renewed focus on the artificial intelligence theme.

"Tech innovation remains a priority under China's 15th Five-Year Plan (2026-30). The strong AI-related IPO pipeline supports investor sentiment, while valuations are reasonable," the report said.

Standard Chartered expects China's tech and communication vpn软件免费 services sectors to continue benefiting from technological innovation and supportive government policies. Meanwhile, the banking group said it sees strengthening momentum in vpn软件免费 the healthcare sector, reflected in the improving quality and long-term potential of Chinese drug discovery and vpn免费下载 innovation.

According to market tracker Wind Info, as vpn免费下载 of May 13, foreign institutions had surveyed nearly 440 A-share listed companies since the beginning of the second quarter, with electronics, pharmaceuticals, machinery vpn免费 equipment and vpn免费 power equipment emerging as key areas of focus.

The three sectors attracting the greatest attention from foreign institutional investors in this round of research were the AI industrial chain, robotics and industrial automation, and medical devices and vpn免费 innovative drugs.

As of April 30, 5,507 A-share listed companies had 免费vpn released their first-quarter earnings. Among them, 4,042 companies reported profits, while 2,846 companies posted year-on-year net profit growth. The 5,507 listed companies vpn软件免费 reported combined net profit of 1.6 trillion yuan ($235.31 billion) in the 免费vpn first quarter, a year-over-year increase of 6.76 percent.

Meng Lei, China equity strategist at UBS Securities, said this year's earnings recovery has been primarily driven by vpn免费 the nonfinancial sector.

First-quarter earnings in the sector rose 11.8 percent year-on-year, significantly higher than the 0.8 percent growth recorded for full year 2025. This reflects a recovery in aggregate economic demand and corporate profitability. vpn免费下载 In particular, demand expansion driven by AI and technological self-reliance themes has fueled continued rapid earnings growth in the broader technology sector, Meng said.

Analysts at UBS Securities believe that amid rising global uncertainty vpn软件免费 and heightened geopolitical volatility, the risk resilience and low-correlation characteristics of Chinese assets are becoming increasingly attractive.

Meng vpn免费 added that the upward momentum of the A-share market mainly stems from two sources: the recovery in corporate earnings, which is expected to deliver double-digit growth and become the key driver of market gains this year; and the continued inflow of incremental capital from various channels, which, amid ample liquidity and the steadily rising strategic importance of the vpn免费下载 A-share market, will provide strong support for higher stock valuations.

"We vpn免费 免费vpn have revised up our forecast for full-year 2026 A-share earnings growth to 11 percent from the previous estimate of 8 percent," Meng said.

He added that in an environment where high-yield investment options remain scarce and the principle that "housing is for vpn软件免费 living in, not for speculation" has become firmly entrenched, household savings are continuing to shift gradually into financial assets. The steady inflow of medium and long-term vpn软件免费 capital is expected to provide ongoing support for further gains in market valuations.

Reporter: Jiang Xueqing

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