UBS: Expected. MSCI China Index is expected to outperform the global market by 5% this year. Investors are positive about Chinese stocks.

The head of the global financial market department in China at UBS, Fang Dongming, indicated that UBS maintains its target for the MSCI China Index to reach 100 points by the end of this year, with a potential increase of about 20% from the current price, and expects the MSCI China Index to outperform the global market by 5% this year. He stated that if the Middle East conflict is contained in the next two to three weeks, global economic and stock market momentum is expected to recover to the levels seen at the beginning of the year. However, if the conflict persists for a longer period, investors' attitudes will become more cautious, and economists and strategists will reassess their forecasts for the global economy and stock market this year. Fang Dongming mentioned that China has a lower dependence on imported oil and Chinese assets have risk-resistant attributes, making Chinese assets more prominently effective for investors in global diversification. Although it is still early, there is currently no data indicating a significant shift in funds flowing into mainland China and Hong Kong stock markets after the outbreak of the Middle East conflict. He expects the MSCI China Index to outperform the global market by 5% this year. Regarding Chinese stocks, he stated that global investors are showing a more positive attitude towards investing in Chinese stocks and are choosing to invest in both the Chinese and American markets. He also believes that in the current high oil price environment, a more stable relationship between China and the US will benefit US economic growth.