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UBS: A-shr Mkt Earnings Expected to Show Significant Recovery in 1H25
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The gradual implementation of a series of easing policies in China since the end of September has reversed the expectations of stock market participants and the real economy, Meng Lei, China Strategist at UBS Securities, said.

High frequency data shows that the growth in real estate trading in first-tier cities started to spread to more cities since October. It will take 3-6 months for the policy benefits to conduct to corporate earnings.

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Therefore, UBS believed that 3Q24 may be the bottom of profit for 2024/ 2025, and A-share market profitability is expected to show a significant recovery in 1H25 and improve QoQ.
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