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Chinese stocks face challenges from tariffs and limited stimulus measures
Chinese stocks are expected to face challenges due to ongoing tariff uncertainties and limited domestic stimulus, according to UBS. The firm maintains a "Neutral" stance, highlighting risks from geopolitical volatility while favoring defensive sectors and high-yielding stocks like China Merchants Bank. Despite projected EPS growth of 8.5% for 2025, potential slowdowns in 2026 loom due to macroeconomic uncertainties.