UBS Securities: The full-year profit growth rate of all A-shares in 2026 is expected to rise to 8%.

UBS Securities' Chinese stock strategy analyst Meng Lei published his views on Chinese stock strategy on December 1st, stating that the profit growth rate of all A-shares in 2026 is expected to increase from this year's 6% to 8%. Meng Lei mentioned that the equity risk premium in the A-share market is still higher than the historical average, while other emerging market stock markets are significantly lower than the long-term average. In the medium term, factors such as incremental macro policies, accelerated A-share profit growth, declining risk-free rates, continued migration of resident savings into the stock market, continuous net inflow of long-term funds, and continued advancement of market value management reforms will help further increase the valuation of the A-share market. Regarding investment themes, he suggested focusing on technology independence and controllability, the "anti-degeneration" concept, Chinese companies going global, and timely deployment in the consumption recovery in the second half of the year. In terms of style allocation, as the mid-term market outlook improves, growth styles may outperform value styles. At the same time, with the continued advancement of the "anti-degeneration" policy, cyclical styles are expected to outperform defensive styles.