UBS Expects CN 2026 Econ Growth to Be at Least 4.5%, Forecasts USD/ RMB to Rise Above 6.8 Mark at End-yr
UBS Global Wealth Management Chief Investment Office (CIO) released an investment research report suggesting that, under targeted fiscal expansion and moderately loose monetary policy, China's economic growth should reach 4.5-5% this year. However, it is unlikely that China will introduce significant stimulus measures overall.
In terms of investment, China's support for domestic AI models and chip autonomy will drive Chinese techs, while there are also innovative growth opportunities in healthcare, materials, power equipment and new consumption sectors. Meanwhile, Investors should also allocate to high-dividend financial stocks and resilient consumers.
The People's Bank of China (PBOC) will also continue guiding the RMB towards steady appreciation, with USD/ RMB anticipated to hiked to 6.8 by the end of this year, the report noted.
China's support for tech innovation provides a favorable environment for Chinese enterprises, the report added. With the recent easing of US restrictions on Nvidia (NVDA.US)'s export of its H200 chips to China, there is potential for upward revisions in market forecasts for China's AI capital expenditure.
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AASTOCKS Financial News
Website: www.aastocks.com
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