--- title: "\"Big Banks\" UBS: Performance leads, Chinese stocks usually start first, optimistic about Tencent, Alibaba, etc" type: "News" locale: "en" url: "https://longbridge.com/en/news/271599784.md" description: "UBS analysis shows that the best and worst performers of Chinese stocks can outperform the market by an average of 15% to 20% in the following year. The bank is optimistic about industries such as technology, the internet, and the solar supply chain, expecting that advancements in AI will continue to be a catalyst. UBS holds an underweight view on the real estate and consumer sectors but believes there may be a catch-up rally in the second half of the year. Recommended stocks include Sungrow Power Supply, Tongwei Co., Ltd., and CATL, all with an investment rating of \"Buy.\"" datetime: "2026-01-06T03:59:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/271599784.md) - [en](https://longbridge.com/en/news/271599784.md) - [zh-HK](https://longbridge.com/zh-HK/news/271599784.md) --- # "Big Banks" UBS: Performance leads, Chinese stocks usually start first, optimistic about Tencent, Alibaba, etc UBS stated that although, theoretically, past stock price performance should not serve as a guide for future performance, its analysis shows that for Chinese stocks, the best and worst performers from the previous year often exceed the market average by about 15% to 20% in the following year. Interestingly, the bank found that most of the leading advantage of last year's best performers is often realized in the first half of the following year, while the catch-up rally for the worst performers typically occurs in the second half. Although there are significant differences in stock price returns among these stocks, this indeed provides the bank with a perspective for screening stocks for 2026. In UBS's 2026 outlook, the bank outlined its industry preferences for 2026. The bank maintains its favor for last year's key winners—the technology and internet sectors—because it expects the progress of AI to continue to be a key catalyst. The bank is also optimistic about the solar supply chain, viewing it as an investment target for global energy storage construction and the domestic "anti-involution" theme. Additionally, the bank favors brokerages and some "going overseas" concept stocks that may benefit from increased market turnover and a re-acceleration of global growth (as expected by UBS). On the other hand, the bank has a low allocation for vehicle manufacturers due to reduced government support, tax cuts, and diminishing subsidy effects. Considering the weak outlook for the real estate market, the bank still has a low allocation for the real estate and consumer sectors. That said, these previously underperforming sectors may see a catch-up rally in the second half of the year, with one key catalyst being stronger policy support after the National People's Congress meeting in March. The following are the stocks most favored by UBS, all with an investment rating of "Buy": Sungrow Power Supply (300274.SZ)│Target price: RMB 225 Tongwei Co., Ltd. (600438.SH)│Target price: RMB 27.6 CATL (300750.SZ)│Target price: RMB 465 Horizon Robotics-W (09660.HK)│Target price: HKD 13.2 Fuyao Glass (03606.HK)│Target price: HKD 96 Huatai Securities (601688.SH)│Target price: RMB 31.2 NetEase (NTES.US)│Target price: USD 185 North Huachuang (002371.SZ)│Target price: RMB 587.5 Tencent (00700.HK)│Target price: HKD 780 Yutong Bus (600066.SH)│Target price: RMB 38 Alibaba (BABA.US)│Target price: USD 216 Zhaojin Mining (01818.HK)│Target price: HKD 37 GDS Holdings (GDS.US)│Target price: USD 57 ### Related Stocks - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [TCEHY.US](https://longbridge.com/en/quote/TCEHY.US.md) - [TCTZF.US](https://longbridge.com/en/quote/TCTZF.US.md) - [00700.HK](https://longbridge.com/en/quote/00700.HK.md) - [300750.CN](https://longbridge.com/en/quote/300750.CN.md) - [300274.CN](https://longbridge.com/en/quote/300274.CN.md) ## Related News & Research - [Alibaba Files Form 13F as Investment Manager, Highlights WVR Structure](https://longbridge.com/en/news/286686984.md) - [Investor interest in global proptech solutions surged last year. Here are three emerging opportunities to watch in 2026](https://longbridge.com/en/news/286681577.md) - [EVN Macedonia puts BESS of 10 MW into operation at its solar park](https://longbridge.com/en/news/286582695.md) - [Key facts: Reliance-CATL talks on batteries; ₹131.58cr LOI Jamnagar G+12](https://longbridge.com/en/news/286842723.md) - [Is Profitability Shift And Real Estate Impairment Altering The Investment Case For Insight (NSIT)?](https://longbridge.com/en/news/287098094.md)