China Equity Strategy: Sustainability of AI trades and three themes beyond AI

研报英文原文证据摘录

China Equity Strategy: Sustainability of AI trades and three themes beyond AI

Powered by Lab Global16 JulyResearch2026ab Evidence UBS YES

China Equity Strategy Equity Strategy

ChinaSustainability of AI trades and three themes

beyond AI Lei Meng

Strategist

lei.meng@ubs.com

+86-21-3866 8939

Tech could remain the main theme in H2 after short-term volatility Yu Sheng

Global capital markets have recorded sharp volatility recently, with varying pullbacks for Strategist

major Chinese/global indices and rising implied volatility. We believe the tech sector and S1460524080001

yu.sheng@ubs.comAI trades will remain the main investment themes in H226E, despite crowded tech trades

+86-21-3866 4873

unwinding somewhat (see H226E A-share outlook: earnings recovery; micro liquidity;

and tech crowdedness). 1) The tech sector should maintain robust earnings growth amid James Wang

rapid AI advances globally/China's strong policy support. 2) Incremental net inflows to Strategist

james-zb.wang@ubs.comthe tech sector from sector/thematic ETFs, actively managed tech tracking mutual funds

+852-3712 2557

(MFs), margin financing and hedge funds should continue. 3) We still expect upside for

A-share tech crowding in magnitude/duration. Historically, it usually takes around three Tommy Tang, CFA

years for MFs’ overweight ratio in a particular sector to rise from previous lows to Strategist

tommy.tang@ubs.com

regional peaks, which is consistent with the roughly three-year cycle from formation to

+852-2971 8357

shift of a market style (see note).

Robin Xu

Three investment themes beyond AI Analyst

S1460511010012

Some investors deem the tech sector’s valuation as stretched and are rebalancing bin.xu@ubs.com

portfolios after taking profits on their tech holdings.