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<Research>UBS: H-/ A-shrs Not in Extreme Pessimism; Balanced Portfolio Remains Best Strategy
Recommend 35 Positive 70 Negative 29 |
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Since both the HSI and CSI 300 Index fell nearly 4% on Monday (23rd), the market appears to be in a state of indiscriminate selling, UBS published a research report saying. Compared to historical sell-offs, this was one of the worst 30-day periods in the past decade. The core question for investors is whether it is time to bottom fish? After comparing the current situation with historical extreme downturn events, the broker concluded that, although there are some signs of disorderly selling, the market is still some way from extreme pessimism. Given the uncertainty in the geopolitical environment, UBS continued to favor A-shares and believed that a balanced investment portfolio remains the most viable strategy. The broker listed Chinese potential outperformers during oil price hike, including PETROCHINA (00857.HK), CNOOC (00883.HK), DONGFANG ELEC (01072.HK), BYD COMPANY (01211.HK), Li Auto (LI.US), CHINA MOBILE (00941.HK), CITIC BANK (00998.HK), CCB (00939.HK), BANK OF CHINA (03988.HK) and ICBC (01398.HK). Overall, while there are signs of selling in the current market, it has not yet entered an extreme pessimism phase. The broker stated that a balanced allocation favoring A-shares, with moderate inclusion of sectors that can withstand geopolitical shocks, remains the most prudent investment strategy. AASTOCKS Financial News Website: www.aastocks.com |
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