UBS: The worst time for A-shares has passed, and the CSI 300 index has an 8% year-on-year increase in earnings per share this year

Meng Lei, China equity strategy analyst at UBS Securities, pointed out at the UBS Greater China Seminar that the worst time for A-shares has passed, as corporate earnings have begun to rebound, policies continue to exert force, and investor confidence is expected to improve. Corporate profit margins in A-shares bottomed out in the third quarter of last year, with UBS forecasting an 8% year-on-year increase in earnings per share for the CSI 300 index this year. In terms of policy support, Meng Lei expects that there is still room for interest rate cuts and RRR cuts this year, and the domestic housing policy will also be increased. Lian Peikun, director of Greater China Research at UBS Global Investment Bank, reiterated that the MSCI China Index has 15% room to rise this year, of which 10% is driven by earnings growth and 5% is driven by valuation. The bank is optimistic about the future of Hong Kong stocks, because foreign Holdings are very low, the price-earnings ratio is only 8 times, and with the return of foreign capital to the Chinese stock market under the US interest rate cut, Hong Kong stocks will be the first wave to benefit.