UBS like China stocks higher – favour consumer related shares
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Via a note issued by analysts in UBS’ Shanghai office, a snippet:
- “In the near term, the market correction offers a good buying opportunity
- Together with a valuation re-rating, we think this would drive considerable market upside
- We tactically favour sectors that benefit from increased macro and industry policy support, and sectors with marginal fundamental improvements but historically low valuations”
ie UBS like consumer stocks
- leisure, appliances and food and beverage firms
- recovery in the services sector and activity by small and medium-sized companies will underpin household incomes, and the release of excess savings will support consumption