UBS says global active managers’ China equity allocations have recovered from a
Q4 2024 trough of about 5% to roughly 7%, well below a c.15% peak in 2021 and
implying sizable scope for further allocation increases. UBS points to improving
earnings as the chief support: A-share aggregate profit growth in Q1 rose by
more than 7 percentage points, and UBS has lifted its full‑year A‑share earnings
growth forecast to 11%. UBS research also flags the renminbi as this year’s most
fundamentally supported core currency, forecasting c.3–4% appreciation versus
major currencies, which should provide an additional incentive for offshore
investors to buy A‑shares.
