UBS Raises China GDP Growth Forecast, Sees Earnings from China Stock Market Soaring, RMB Appreciating

Published: May 18, 2023 15:55 (GMT+8)
Driven by a rebound in consumption, China's economic recovery was stronger than expected in the first quarter, and UBS raised its forecast for China's full-year GDP growth to 5.7% in its wealth management report.

Driven by a rebound in consumption, China's economic recovery was stronger than expected in the first quarter, and UBS raised its forecast for China's full-year GDP growth to 5.7% in its wealth management report.

At the same time, UBS maintains the forecast that the earnings growth of China's stock market will reach 14%, and believes that this year's Chinese stocks have double-digit upside space. In terms of sectors, it is optimistic about consumption, Internet, transportation, capital goods and material stocks.

In addition, the growth situation in the United States and China and the interest rates issue will become the main driving factors for the dollar against the yuan. The dollar against the yuan may fall to 6.5 or below before the end of the year. As the economic momentum further strengthens after the Labour Day holidays, the yuan will maintain a steady appreciation trend.

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