China Onshore Tech: Equity Preferences and Portfolio Positioning

UBS CIO maintains a constructive stance on China Onshore Technology equities, driven by state-backed initiatives for semiconductor self-sufficiency, a potential CNY 2tr AI infrastructure program, and multi-year policy support under the Digital China 2035 agenda.

Key Takeaways

• 1.Chinese government policy strongly supports technology self-sufficiency and digital economic expansion through 2035, driving valuation rerating potential across domestic tech hardware and semiconductors.
• 2.China is reportedly considering an AI infrastructure investment program worth up to CNY 2tr (~USD 295bn) to boost computing capacity, data center infrastructure, and domestic LLMs.
• 3.The China Onshore Tech Most Preferred list consists of 15 equal-weighted (6.7% each) high-conviction stocks positioned across wafer fabrication equipment, AI chips, DRAM, packaging, auto parts, and server components.

Table of Contents

• Equity preferences
• Positioning and key trends
• Equity selection
• About the authors
• Appendix

Report data

Equity selection: Most Preferred

Reports in this series

Equity Preferences is shown in chronological order through this edition, published on August 28, 2026.

Part of the Equity Preferences series — view all 12 editions

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6. Aug 27UBS Equity Preference List Hong Kong 2026 08 27

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