UBS China strategists expect the rise in A-shares to continue. The bank's seller team suggests betting on bullish options or bullish spread options by tracking the Chinese small and medium capitalization index. These targets are more attractive in the tradable options field. According to UBS, the profit growth rate of A-shares is expected to increase to 8% in 2026, up from 6% in 2025. Even if the stock market has risen this year, valuations are still attractive. Structural revaluations will be supported by the following factors: falling risk-free interest rates, residents' savings relocation, long-term capital inflows, and ongoing market value management reforms. Small and medium capitalization stocks are more balanced in terms of industry allocation, and the technology sector accounts for a higher share. At the same time, the implied volatility of the China Securities 500 and China Securities 1000 Index has declined from the October high.

UBS China strategists expect the rise in A-shares to continue. The bank's seller team suggests betting on bullish options or bullish spread options by tracking the Chinese small and medium capitalization index. These targets are more attractive in the tradable options field. According to UBS, the profit growth rate of A-shares is expected to increase to 8% in 2026, up from 6% in 2025. Even if the stock market has risen this year, valuations are still attractive. Structural revaluations will be supported by the following factors: falling risk-free interest rates, residents' savings relocation, long-term capital inflows, and ongoing market value management reforms. Small and medium capitalization stocks are more balanced in terms of industry allocation, and the technology sector accounts for a higher share. At the same time, the implied volatility of the China Securities 500 and China Securities 1000 Index has declined from the October high.