UBS Wealth Management: Market Correction May Be Excessive, Offering Low Valuation on High-Quality Chinese AI Stocks

UBS Wealth Management's Investment Director Office has expressed its view that the current market correction may be excessive, providing investors with an opportunity to acquire high-quality Chinese AI stocks at lower valuations. Despite the ongoing support for AI development and innovation from policy, as market sentiment and fundamentals improve, earnings, valuation, and position levels are expected to recover gradually. According to the views, the forward 12-month P/E ratio of China's internet industry is around 13 times, approaching the level before DeepSeek's release, indicating that the current valuation does not fully reflect the gains from AI investments and realizations over the past year.

Earnings per share growth for MSCI China is anticipated to be about 13% this year, while the earnings growth rate for the technology sector could reach 20% to 25%.