Chinese assets are attracting sustained interest from global investors who recognize growing value in the country's tech-led upgrade. This is driven by a renewed wave of innovation in sectors such as artificial intelligence and advanced manufacturing.

This growing interest was evident at the 26th UBS Greater China Conference. At the event, UBS, a global investment bank, drew more than 3,600 participants — up over 10 percent from last year — with investors from outside the Asia-Pacific region surging by more than 32 percent year-on-year.

China's stock market saw strong momentum over the past year. The total market value of A-shares surpassed 100 trillion yuan ($14.37 trillion), while annual trading volume also reached a record high of more than 400 trillion yuan.

Against the backdrop of a new round of technological and industrial transformation, Chinese assets are undergoing a sustained re-rating in global markets.

UBS expects the attractiveness of Chinese assets to increase further this year.

At the conference, Fang Dongming, head of UBS China Global Markets, said international investors are increasingly drawn to China's potential for industrial upgrading and innovation-driven growth.

"The rationale behind this renewed confidence lies in China's ability to sustain value creation across economic cycles," he said.

Fang noted a notable shift in investor behavior. Trading-oriented investors have been actively increasing their exposure to China, while allocation-oriented investors are reassessing China's weighting in their global portfolios based on improving fundamentals and policy support.

He added that UBS expects these long-term investors to significantly increase their positions in 2026.

Supportive policies, ample liquidity, and anticipated inflows from institutional investors are likely to maintain the stock market's strong momentum in the year ahead, Fang said.

UBS remains particularly optimistic about technology-related sectors. Meng Lei, China equity strategist at UBS Securities, said that growth stocks are expected to outperform value stocks this year.

The most promising sectors include communications, electronics, and defense, areas where profitability and innovation prospects remain strong, Meng said.

Source: Wenhui Daily