Meng Lei, a Chinese stock strategy analyst at UBS Securities, said that the A-share market recently recovered due to some short-term factors, but it is expected that short-term concerns will not change the trend of rising mid-term valuations, and global technology stocks are expected to rise further next year. Recently, the share of big technology transactions has fallen below this year's average, and the scale of financing has declined, indicating that concerns about crowded transactions in the technology sector have been alleviated. In terms of style configuration, it is expected that “growth” may outperform “value”, “cycle” is expected to outperform “defense”, and large and small markets will maintain a relatively balanced trend next year. Tactically, they are optimistic about the industry benefiting from China's sparks of innovation, sufficient market liquidity, and narrowing PPI decline. Specifically, in terms of investment topics, the 2026 proposal focuses on self-reliance and self-improvement in technology; preferential sectors under the continuous promotion of “anti-internal scrutiny”; Chinese companies' overseas expansion and global competitiveness, as well as the acceleration of corporate profits, will gradually drive up residents' income and sales expenses, and the second half of the year can arrange consumption at any time.

Meng Lei, a Chinese stock strategy analyst at UBS Securities, said that the A-share market recently recovered due to some short-term factors, but it is expected that short-term concerns will not change the trend of rising mid-term valuations, and global technology stocks are expected to rise further next year. Recently, the share of big technology transactions has fallen below this year's average, and the scale of financing has declined, indicating that concerns about crowded transactions in the technology sector have been alleviated. In terms of style configuration, it is expected that “growth” may outperform “value”, “cycle” is expected to outperform “defense”, and large and small markets will maintain a relatively balanced trend next year. Tactically, they are optimistic about the industry benefiting from China's sparks of innovation, sufficient market liquidity, and narrowing PPI decline. Specifically, in terms of investment topics, the 2026 proposal focuses on self-reliance and self-improvement in technology; preferential sectors under the continuous promotion of “anti-internal scrutiny”; Chinese companies' overseas expansion and global competitiveness, as well as the acceleration of corporate profits, will gradually drive up residents' income and sales expenses, and the second half of the year can arrange consumption at any time.