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.
