Meng Lei, China equity strategist at UBS Securities, raised his aggregate earnings forecast for A-share companies, now projecting a 15% rise in full-year 2026. He says earnings recovery, incremental fund inflows and the global tech narrative support a continued steady rebound in A-shares this year, but flagged two risks: geopolitics, US Treasury yields and oil-price volatility could dent valuations in rate-sensitive tech; and heavy tech overweighting by public mutual funds may create 'redemption

Meng Lei, China equity strategist at UBS Securities, raised his aggregate earnings forecast for A-share companies, now projecting a 15% rise in full-year 2026. He says earnings recovery, incremental fund inflows and the global tech narrative support a continued steady rebound in A-shares this year, but flagged two risks: geopolitics, US Treasury yields and oil-price volatility could dent valuations in rate-sensitive tech; and heavy tech overweighting by public mutual funds may create 'redemptions-on-return-to-breakeven' pressure that constrains the rally.