European Investors Maintain Confidence in Chinese AI Tech, Show Unexpected Interest in Biotech: UBS

According to UBS, European investors have maintained confidence in China's artificial intelligence technology sector amid recent market volatility, with some taking profits in recent weeks but remaining steadfast in their long-term outlook. The bank also found that European investors showed unexpected strong interest in Chinese biotech companies, suggesting they are seeking underexplored innovation areas in China.

UBS China equity strategist Wang Zonghao noted that European investors now have a broader understanding of China's AI supply chain compared to previous surveys, though significant room for deeper penetration remains. Investors generally prefer high-quality sectors with high barriers to entry in the AI supply chain rather than cyclical targets benefiting from near-term supply shortages, and appear more optimistic about certain Chinese semiconductor equipment companies.