UBS: Expect MSCI China Index to outperform the global market by 5% this year; investors hold a positive attitude towards Chinese stocks

LootboxPhobia · 2026-03-16T08:33:55+00:00

UBS's Head of Global Financial Markets China, Fang Dongming, stated that the MSCI China Index's year-end target is 100 points, representing an expected increase of about 20%. He believes that if the Middle East conflict remains under control, the global economy and stock markets will recover, but if it continues, investors will become more cautious. Chinese assets are resilient to risk, which contributes to global investment diversification. Although capital inflows have not yet increased significantly, attitudes toward investing in Chinese stocks have become more positive.

LootboxPhobia

2026-03-16 08:33:55

Abstract generation in progress

UBS Global Markets China Head Fang Dongming told the Smart Finance APP that UBS maintains its target of raising the MSCI China Index to 100 points by the end of this year, about 20% higher than the current level, and expects the MSCI China Index to outperform the global market by 5% this year.

He stated that if the Middle East conflict is brought under control within the next two to three weeks, the momentum of the global economy and stock markets could recover to early-year levels. However, if the conflict persists longer, investors’ attitudes will become more cautious, and economists and strategists will reassess their forecasts for the global economy and stock markets this year.

Fang Dongming mentioned that China has a relatively low dependence on imported oil, and Chinese assets are resilient to risks. Therefore, Chinese assets are expected to have a more significant effect on investors’ diversified global investment allocations.

Although it is still early, there is no data yet showing a clear shift of funds into mainland China and Hong Kong stocks following the outbreak of the Middle East conflict. He expects the MSCI China Index to outperform the global market by 5% this year.

Regarding Chinese stocks, he said that global investors are more actively deploying Chinese stocks and are also choosing to invest in both the China and U.S. markets. He also believes that, amid high oil prices, a more stable China-U.S. relationship will benefit U.S. economic growth.

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