China News Agency, Shanghai, February 25 (Reporter Jiang Yu) UBS Wealth Management Investment Director Office (CIO) issued an institutional opinion on the 25th that the Chinese stock market is more attractive than other Asian markets.
The CIO's Asia asset allocation team has upgraded China stocks from neutral to bullish.
The agency believes that Chinese stocks underperformed the world last year, with the MSCI China Index down 22.8%, while the MSCI World Index rose 16.8% over the same period.
However, the Chinese economy is believed to have bottomed out before April this year, fueled by the People's Bank of China's loose monetary policy, which should help China's corporate earnings outlook stabilize before early summer.
The worst is over for the Chinese stock market, which faces relatively low global interest rate and geopolitical risks, the CIO said.
Regarding the impact of the latest international situation on the global market, CIO analyzed that the global market is expected to remain highly volatile in the short term, and the possibility of further decline cannot be ruled out.
However, according to the base case, the decline will not last long.
Geopolitical events do not have a significant impact on market returns in the long run.
Investors could look to Chinese and euro zone stocks, especially for investment opportunities in green tech, artificial intelligence, big data and cybersecurity, the CIO suggested.
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