UBS Tells Rich Clients to Buy Dip in China Stocks Hurt by Virus
- UBS GWM is overweight EM, underweight European stocks
- Shanghai Composite Index has already bounced from lows
A man waits for customers in his shop in Beijing on Feb. 25.
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The spreading coronavirus epidemic is spooking investors out of equities but UBS Global Wealth Management is advising its high net-worth clients to use this as an opportunity to load up on Chinese shares.
“We think investors should be buying the dip in emerging-market stocks and specifically Chinese stocks,” Maximilian Kunkel, chief investment officer for Germany at the Swiss wealth management firm, said in a phone interview. “You have a more attractive valuation and growth mix here and also China seems to be containing the virus and getting back to business.”