Investing.com — UBS added Kuaishou Technology () and Meituan () to its China Global Equity Focus List while increasing portfolio weightings for , , and , saying it remains constructive on Chinese equities amid accelerating AI adoption and supportive policy trends.
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UBS reiterated its “attractive” view on Chinese equities, saying it continues to favor technology stocks because of robust AI-driven growth, innovation leadership and ongoing chip localization. The bank said leading semiconductor, AI supply-chain and internet platform companies remain well positioned to benefit from rising AI monetization and international capital inflows.
The bank added Kuaishou with a 3% portfolio weighting, citing the company’s progress in artificial intelligence. UBS said Kuaishou’s Kling AI model is a global leader in text-to-video generation with user engagement comparable to OpenAI’s Sora, and believes investor attention will increasingly focus on its AI potential despite near-term pressure on e-commerce and advertising revenue.
UBS also initiated a 2% position in Meituan, arguing that the most intense phase of China’s food-delivery competition has passed. The brokerage expects a tactical rebound in the stock as a more rational competitive environment supports steadier earnings recovery from the second quarter onward.
Alongside the additions, UBS removed , and from the focus list. It increased the weighting of Ping An Insurance by 2 percentage points, Alibaba by 1 percentage point, and WuXi AppTec and Xiaomi by 0.5 percentage points each, while trimming exposure to , , , and PICC Property & Casualty.
UBS said it expects mid-teens returns for Chinese equities through June 2027, supported by improving corporate fundamentals, policy support and the long-term growth potential of artificial intelligence.
