UBS: European investors still have confidence in China's AI technology sector

The Zhitong Finance App learned that Wang Zonghao, head of China stock strategy research at UBS, pointed out in the report that although some European investors have made a profit from fluctuations in China's AI technology stocks in recent weeks, their confidence in the AI technology sector is still firm.

The report said that compared to previous surveys, European investors have broadened their understanding of China's AI technology supply chain, but there is still room for further penetration. They are watching for possible disruptions brought about by China's AI model. Since China is trying to catch up with AI capabilities and related infrastructure, it is reasonable for investors to allocate part of their investment portfolios to China's AI supply chain in the long run.

The report points out that investors usually want to focus on high-quality, high-barriers to entry in the AI technology supply chain, and are less willing to chase cyclical targets that have benefited from recent supply shortages. Meanwhile, investors seem to be familiar with and optimistic about some Chinese semiconductor equipment companies.

UBS said that with the exception of AI, European investors are more interested in Chinese biotech than expected, speculating that this is because they are looking for underexplored areas of innovation in China.

According to UBS, European investors generally seem to be more diverse than Asian investors, and despite the poor performance of internet companies' stock prices this year, many people continue to hold them. Investors agree that capital inflows into AI technology stocks are the main reason for the recent failure of the Internet sector, and current low valuations have made large Internet stocks a reasonable value and defense stock.