UBS Keeps Underweight Stance on Chinese Equities

Investor Sentiment Towards Chinese Stocks
Many international investors are showing caution when it comes to investing in Chinese stocks. According to a recent report by UBS, about 25% of 800 active foreign institutions, which manage a total of $150 billion in Chinese stocks, did not hold any Chinese equities by the end of the second quarter of the year. This cautious approach is known as maintaining underweight positions, meaning investors hold less of a particular stock than is typically found in benchmark indices.