China Tech Insight: Sentiment and liquidity concerns vs. resilient fundamentals – which will prevail?

研报英文原文证据摘录

China Tech Insight: Sentiment and liquidity concerns vs. resilient fundamentals – which will prevail?

Global Research

17 July 2026ab

China Tech Insight Equities

ChinaSentiment and liquidity concerns vs. resilient

fundamentals – which will prevail? Technology

Jimmy Yu

Analyst

jimmy.yu@ubs.com

Our initial takeaways on China's semi stock sell-off in July +86-21-3866 8880

After a strong rally in 1H26 (A-share Semi Index +84% vs. HS300 Index +7%), the China Xinlei Li

semiconductor sector has seen meaningful profit-taking since July (A-share Semi Index Analyst

-21% vs. HS300 Index -6% in the same period). We believe the profit-taking among S1460522090008

China tech stocks and portfolio rebalancing were likely driven by: 1) the fluctuation of xinlei.li@ubs.com

global major tech semi stocks (SOX index -18% since July) which weakened sentiment +86-21-3866 8805

for Chinese AI infrastructure-related stocks; and 2) concerns about the record-breaking Yongwei Lai

fund-raising of the CXMT IPO and likely sizeable trading volume after its debut. Based Analyst

on our discussions with domestic and regional institutional investors, it seems the S1460524110001

weakened sentiment in China tech stocks may continue in the near future. We believe yongwei.lai@ubs.com

the correction may create a good opportunity for long-term investors, given the still- +86-21-3866 8780

solid fundamentals of China's AI-related tech semi companies. We still prefer sub- Qing Luo

sectors such as China's semicap, advanced packaging and back-end equipment among Associate

our China semi coverage. S1460125090001

qing-za.luo@ubs.com

China AI semi fundamentals remain solid, with more attractive valuations +86-213-866 5000

We remain constructive regarding the global semi cycle and China AI-related semi Edward Liu