Chinese stock investors are being advised by UBS Global Wealth Management to adopt a defensive strategy due to weak consumption and potential market volatility caused by potential tariff increases.

Eva Lee, head of Greater China equities at UBS, has emphasized the importance of focusing on stocks that offer dividend yields exceeding 6%, which is significantly higher than the 2% yields offered by government bonds. Lee has also highlighted a 4% yield gap that presents an attractive opportunity for investors.

She has recommended sectors such as banks, utilities, and energy as promising areas for investment, suggesting that these sectors may offer more stability and returns in the current economic climate.