UBS Forecasts 20% Rise in Chinese Stocks Amid Improving Profit Outlook

Inflation Outlook Fuels Stock Market Growth

According to a new report from UBS Securities, rising inflation expectations are likely to drive a 20% increase in Chinese stocks. This forecast is based on improving corporate earnings and potential valuation re-rating.

Increased Pricing Power Among Chinese Firms

Survey data shows that more Chinese companies are planning to raise prices due to higher input costs. At the same time, signs of easing overcapacity are emerging, supporting a recovery in sector health.

MSCI China Index Gains Momentum

UBS analysts previously projected the MSCI China Index could reach 100 points by the end of 2026. The improving market environment, including inflation trends and earnings growth, may further boost the index.

• Inflation drives valuation gains
• Corporate profits show resilience
• Market sentiment continues to improve