Follow us on:   

China ‘overweight’, India ‘neutral’- UBS rating
November 18, 2013, 6:45 am

Broader capital back to China, however, could cheer things up for the emerging market equities as well, UBS strategists Niall MacLeod and Aakash Rawat said  [Getty Images]

Broader capital back to China, however, could cheer things up for the emerging market equities as well, UBS strategists Niall MacLeod and Aakash Rawat said [Getty Images]

In its latest report released on Monday, global brokerage house UBS has upgraded China to “overweight”, saying Third Plenum reforms will likely cause China to outperform Asia for the next few months.

“China in our view takes centre-stage at least for a few weeks,” underlined the report.

India, meanwhile, was downgraded to “neutral” from “overweight”.

Broader capital back to China, however, could cheer things up for the emerging market equities as well, UBS strategists Niall MacLeod and Aakash Rawat said.

“Sometimes, our overweights and underweight moves are driven by a factor in one country. At other times it is just that something else looks better. That’s the case with India,” UBS said in the new report.

The scope and tone of China’ new reforms suggested in the Third Plenum communiqué, details of which were released on Friday has “positively surprised” its strategists, said UBS.

UBS said the prospect of reforms will narrow the valuation gap of China to the region.

China’s top leadership has unveiled a bold and wide-ranging reform plan that exceeded market expectations.

Source: Agencies

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam * Time limit is exhausted. Please reload the CAPTCHA.