Hong Kong equity liquidity looks poor because IPO and placement supply has outpaced inflows this year, while A-shares are seeing deposit inflows and better liquidity. Therefore UBS prefers A-shares over Hong Kong equities despite the larger pipeline of big listings by market cap.
Chinese hardware tech remains UBS's best Asian opportunity: the government is now supportive of the sector, earnings are still very strong at 70-80% year-on-year, and relative to other sectors it is still the best earnings growth story in the market.