On October 28, UBS released the China Stock Strategy Report, stating that after recent adjustments dominated by technology stocks, China's major indices have fallen 18% since this year, and the AI-related technology hardware stocks tracked by the bank have only risen 9% since this year. The bank believes that concerns about AI fundamentals have been amplified excessively, valuations are close to historic lows, risk and return are once again becoming attractive, and when investors restructure their portfolios for the new year at the end of the year, their level of attention may pick up. The bank pointed out that the profit growth of technology hardware is still strong, and the profit forecast for most AI technology stocks has increased by 12% to 15% in the past three months. However, the valuation is close to its historical bottom, and it is implied that future profit growth will slow sharply. Historically, when valuations reached a similar level, the shares concerned rose by an average of more than 50% over the next 12 months. According to the congestion level and financing data tracked by the bank, net “hot money” holdings have fallen back to the level at the beginning of the year, the short selling ratio of Hong Kong stocks is also close to historical highs, and short selling of some AI technology hardware stocks has recently risen.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.