UBS Cuts Forecast for Chinese Stocks, Impacting Alibaba Amid Trump Tariff Threats
UBS Lowers Predictions for Chinese Stocks
UBS Global Wealth Management has significantly lowered its mid-2025 forecast for Chinese stocks, with a special mention of Alibaba. Targeting the MSCI China Index, UBS reduced its figures from 76 to 67, reflecting concerns over tariff threats from Donald Trump and inadequate economic stimulus.
Concerns Over Tariff and Economic Stimulation
Donald Trump’s recent re-election could signal a more stringent trade policy, potentially imposing tariffs between 10% to 20% on all imports, further impacting investor confidence in Chinese e-commerce and the real estate sector.
- MSCI China Index: Downgraded targets to 74 from 79 for end-2025.
- Stock Market Sentiment: Pessimism prevails over China-US relations.
- Alibaba's Singles' Day campaign commences early to bolster consumer participation.
China’s Economic Landscape
Despite the unveiling of a massive 10 trillion yuan (US$1.4 trillion) stimulus package to navigate ongoing economic downturns, analysts remain skeptical about its effectiveness in rejuvenating the sluggish property sector and sparking consumer confidence.
China Stocks at a Crossroads
The impact of these factors poses significant concerns not only for Chinese equities but also for global markets. As expectations exceed actual stimulus, investors may witness a notable pullback in Chinese stocks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.