UBS China equity strategist Wang Zonghao said UBS’s tracking of about 800 active foreign funds shows foreign institutional allocations to China equities were broadly unchanged in Q3. By sector, international investors net increased positions most in healthcare, internet and technology—likely aided by IPOs and placements—and trimmed insurance, basic materials and autos. UBS remains constructive on China AI tech hardware given attractive risk/reward, but warns the recent global tech sell-off could

UBS China equity strategist Wang Zonghao said UBS’s tracking of about 800 active foreign funds shows foreign institutional allocations to China equities were broadly unchanged in Q3. By sector, international investors net increased positions most in healthcare, internet and technology—likely aided by IPOs and placements—and trimmed insurance, basic materials and autos. UBS remains constructive on China AI tech hardware given attractive risk/reward, but warns the recent global tech sell-off could produce further spillovers into domestic names. With AI sentiment still fragile and public mutual funds’ AI hardware holdings remaining elevated, Wang recommends a barbell approach pairing tech hardware with banks.