UBS downgrades China’s tech sector, citing rally-driven revaluation and tariff risks ...Middle East

forex live - News
UBS downgrades China’s tech sector, citing rally-driven revaluation and tariff risks

UBS has lowered its rating on China’s technology sector from Attractive to Neutral, following a strong year-to-date gain of 32%.

In a note to clients, the bank attributed the sector’s rally to growing enthusiasm around China’s recent advancements in artificial intelligence and the government's emphasis on AI development at the National People's Congress. However, UBS now believes that investors have adequately priced in the upside potential for Chinese internet stocks, limiting further near-term gains.

    “We no longer believe that markets underappreciate the potential for Chinese internet stocks” “At the same time, we see an increased risk of further tariff escalation between the U.S. and China, as key structural concerns remain unaddressed.”

    Given these factors, UBS is recommending a tactical approach, advising investors to lock in profits and await greater clarity on trade policy or more attractive re-entry points before revisiting the sector. The bank maintains a Neutral stance on Chinese equities as a whole.

    ***

    Earlier:

    Citi downgrades US equites and upgrades China equities This article was written by Eamonn Sheridan at www.forexlive.com.

    Read More Details
    Finally We wish PressBee provided you with enough information of ( UBS downgrades China’s tech sector, citing rally-driven revaluation and tariff risks )

    Apple Storegoogle play

    Also on site :

    Most viewed in News