UBS like China stocks higher – favour consumer related shares | Forexlive

Via a note issued by analysts in UBS’ Shanghai office, a snippet:

• “In the near term, the market correction offers a good buying opportunity
• Together with a valuation re-rating, we think this would drive considerable market upside
• We tactically favour sectors that benefit from increased macro and industry policy support, and sectors with marginal fundamental improvements but historically low valuations”

ie UBS like consumer stocks

• leisure, appliances and food and beverage firms
• recovery in the services sector and activity by small and medium-sized companies will underpin household incomes, and the release of excess savings will support consumption