STOCKS | UBS Securities' Meng Lei Sees A-Share Steady Rebound Continuing This Year

According to Jin10, UBS Securities China equity strategist Meng Lei raised his overall earnings expectations for A-share companies and said total earnings for all A-share companies are expected to grow 15% in 2026. Meng Lei said A shares are likely to extend their steady rebound this year, driven by earnings recovery, incremental capital inflows, and the global technology narrative, but he noted two uncertainties ahead: geopolitical tensions, U.S. Treasury yields, and oil-price volatility may affect valuations in interest-rate-sensitive technology stocks, while public funds' heavy overweighting of the technology sector could face "break-even redemption" pressure and limit the rebound.