At a Tuesday media briefing, UBS China Equity Strategy Research Head Wang Zonghao stated that investors can now resume buying technology stocks, adding that he prefers A-shares over Hong Kong-listed stocks given factors such as liquidity conditions.

Wang noted that the three triggers behind the earlier tech sector pullback—shifts in the AI narrative, concentrated positioning, and deleveraging—have all shown signs of improvement. Nevertheless, he anticipates that investors will seek out more non-AI sectors in the latter half of the year, which should broaden the market's performance beyond the narrow leadership seen in the first half.

Compared to Hong Kong, where IPOs and placements are more frequent, A-shares face relatively ample liquidity, and he is more optimistic on hardware names, which carry significant weight in that market. Given a barbell strategy, he also favors bank stocks, along with sectors less tied to AI such as non-ferrous metals and themes around overseas expansion. He remains cautious on consumption, suggesting that incremental policy support is likely to target investment instead.

UBS continues to hold a positive outlook on US tech stocks, with a year-end target of 8,100 points for the S&P 500 Index.