UBS conveys upbeat note on Chinese stocks in 2026 as global investors seek diversification

UBS Group conveyed a sanguine outlook on Chinese stocks in 2026, as the world’s second-largest economy proved to be an important alternative for global investors seeking to diversify away from US equities, which face headwinds from stretched valuations to jitters about the independence of the Federal Reserve. Chinese stocks are expected to be energised by the nation’s growing innovation capability, greater adoption of artificial intelligence across traditional industries and potential inflows...