UBS: China Needs Stronger Policies to Revive Stocks Beyond Central Bank Easing
• UBS wealth management says China needs "punchier" policies beyond PBOC easing to revive equities • Favors defensive stance on Chinese stocks; likes state banks, recurring cash flow sectors, share buybacks • $6.3 trillion erased from Chinese/HK stocks since 2021 peak; offshore yuan down 1% in 2023 • Investors want larger fiscal steps like supplementary lending to show growth focus • UBS still sees 10% upside for Chinese stocks this year as most preferred market