Ideas
China property stimulus boosts volumes
The new property package should meaningfully help transaction volume and boost sentiment into the September-October season. Extending mortgage terms to 40 years improves incremental affordability, while shifting developers toward completed-home sales helps buyer confidence and boosts GDP via new-home sales, though it is not yet clear this marks a true turning point.
Flatten 10s30s Treasury curve
The Treasury can control the curve shape, and the new Fed stance signals the long end is too steep. Therefore Bennett is positioned for a flatter 10s30s Treasury curve, consistent with the view that sensible policies are reducing term premium and flattening the back end.
US earnings and tech remain strong
US earnings remain exceptional even after stripping out one-off gains, growing around 20-40%, and technology earnings are particularly strong. Valuations do not look like the dot-com bubble, so equities and the technology sector remain preferred overweights.
Oracle 30-year bonds now attractive
AI hyperscalers must fund heavy infrastructure investment, and credit markets have repriced enough to make that debt interesting. Oracle's 30-year bond has widened to about 250 basis points and yields around 8%, which starts to compensate lenders; September new issues could offer slightly more attractive entry points.
Korean won can rally further
Korea's market has become cleaner and more stable after earlier leverage-driven volatility. Bennett is neutral on Korean equities, but is constructive on the Korean won, which has already rallied about 10% in six weeks and should be supported further by repatriated earnings from large Korean companies being reinvested domestically.
CXMT is protected domestic memory champion
CXMT delivered a much stronger-than-expected quarter with both volume and margin upside, showing it can get yields and manufacturing up. As China's domestic memory ecosystem becomes more insulated from imports, CXMT is the domestic champion and China AI play; at roughly 10x 2027 earnings it could re-rate toward 25x, and it is not yet in major indices, so passive/index ownership has not fully priced it.
Memory shortage keeps prices rising
The memory cycle remains tight: DDR5 and DDR6 demand is insatiable despite ramp-up, HBM is sold out as suppliers struggle with yields and capacity, and DRAM is likely to face shortage for at least a few years. With no efficiency breakthrough reducing memory demand, memory prices have nowhere to go but up, making the general memory trade attractive.
Francis
Senior Banking Analyst, Bloomberg Intelligence
38:02
China banks show stabilizing margins
China's big banks delivered strong first-half results with net interest margins stabilizing and easing margin pressure in Q2. Lending is increasingly aligned with Beijing's technology and manufacturing policy, dividends remain stable around 31% with room for modest per-share improvement, and banks can be differentiated by pre-provision profit growth and overdue-loan trends.
Meituan benefits as competition eases
The internet and delivery sector's earnings have bottomed out, with competition clearly easing and cost control improving. Even with the consumer sector still lackluster, the delivery/internet names should deliver earnings growth from a depressed base.
China internet earnings have bottomed
The internet and delivery sector's earnings have bottomed out, with competition clearly easing and cost control improving. Even with the consumer sector still lackluster, the delivery/internet names should deliver earnings growth from a depressed base.
Hardware tech leads China earnings
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.
Basic materials earnings upgrades strong
China's basic materials sector has seen 20-30% year-to-date earnings upgrades and is a UBS preferred sector. It should benefit from upstream macro and trade/financial trade dynamics and offers diversification away from the dominant AI hardware trade.
A-shares liquidity better than Hong Kong
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.
A-shares liquidity better than Hong Kong
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.
Exporters may beat on stable currency
China's going-global and exporter companies should have had a better earnings picture, but much of the benefit was offset by R&D spending. If the currency stabilizes at current levels, the third quarter should bring a better earnings season for exporters, especially tech and financial-market related names.
Shein valuation collapsed after tariff change
Shein missed its IPO window, and its valuation has fallen from about $100 billion at peak to a $22-25 billion targeted range. Tariff and de minimis changes collapsed margins and 2025 net income fell nearly 40%, meaning the company and its IPO investors are not the winners even if losses are partly mitigated; supply chain remains the bigger beneficiary.
This Bloomberg Markets video, published August 31, 2026,
features Kristie Hong, Ben Bennett, Leonid Mironov, Francis, Anthony Stevens, James Wang, Juliana Lou
discussing KWEB, 10s30s Treasury curve spread, SPY, U.S. technology sector, Oracle 30-year bonds, AI Hyperscaler Credit, KRW, CXMT, Memory/DRAM makers, KBA, Meituan, China internet/delivery sector, SMH, China basic materials sector, Hong Kong equities, ASHR, China exporters/Going Global stocks, SHEIN.
16 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Kristie Hong,
Ben Bennett,
Leonid Mironov,
Francis,
Anthony Stevens,
James Wang,
Juliana Lou
· Tickers:
KWEB,
10s30s Treasury curve spread,
SPY,
U.S. technology sector,
Oracle 30-year bonds,
AI Hyperscaler Credit,
KRW,
CXMT,
Memory/DRAM makers,
KBA,
Meituan,
China internet/delivery sector,
SMH,
China basic materials sector,
Hong Kong equities,
ASHR,
China exporters/Going Global stocks,
SHEIN
