China Equity Strategy: Postcard from Europe: AI conviction from investors

研报英文原文证据摘录

China Equity Strategy: Postcard from Europe: AI conviction from investors

Global Research

15 July 2026ab

China Equity Strategy Equity Strategy

ChinaPostcard from Europe: AI conviction from

investors James Wang

Strategist

james-zb.wang@ubs.com

+852-3712 2557

AI remains a key focus for investors Tommy Tang, CFA

We have just returned from a week of meetings with European investors. Interest was Strategist

strong in Chinese equities despite summer holidays in Europe, and AI remains the main tommy.tang@ubs.com

+852-2971 8357

topic of discussion. While share prices of AI tech names have seen de-rating in recent

weeks and some investors admitted profit taking amidst the volatility, conviction in Lei Meng

AI tech remains strong with investors' interests centred around: 1) China's localisation Strategist

and domestic capex plays, 2) the next area of bottleneck, and 3) segment leaders with S1460517080001

lei.meng@ubs.comreasonable valuations. While investors' knowledge around Chinese AI tech supply chain

+86-21-3866 8939

has broadened vs our prior visits, we see room for further penetration with investors

appreciative of our AI tech supply chain mapping in China vs global (see note). Outside Yu Sheng

of AI, the main surprise was the surprisingly strong interest in China biotech as (we Strategist

S1460524080001suspect) investors look for less explored areas of Chinese innovations and diversification

yu.sheng@ubs.com

outside of AI. China internet has been an area of disappointment for many European

+86-21-3866 4873

investors, however investors agree with us that the internet stocks could serve as

defensive stocks given the extremely depressed valuation.

Pullback in AI likely to be well supported

Investors generally agree that the AI tech hardware rally still has legs given strong