UBS On-Air: Market Moves Top of the Morning: Seek opportunities in China
Oct 24, 2025
In this insightful discussion, Xingchen Yu, an Emerging Markets Strategist at UBS, shares his expertise on China's economic landscape. He highlights recent upgrades in China tech and offshore equities, driven by AI monetization and self-sufficiency trends. The conversation delves into the shift towards consumption-led growth and the importance of innovation emphasized in the Fourth Plenary Session. Yu also examines the impact of US-China relations on market volatility and offers a hopeful outlook for earnings growth in Chinese tech.
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Consider Upgrading China Equity Exposure
- Upgrade exposure to China tech and offshore Chinese equities given CIO's recent view change.
- Expect renewed global investor inflows as earnings and liquidity improve.
Consumption Is Growing But Still Behind
- Consumption now contributes most to China's GDP but still lags developed markets in share and services.
- Closing the gap needs social safety net improvements alongside supply-side reforms.
AI And Tech Self-Sufficiency Are Central
- China is prioritizing AI and tech self-sufficiency in the 15th Five-Year Plan with stronger policy support.
- Accelerating AI monetization and semiconductor localization should drive a dramatic earnings turnaround in tech.