UBS Wealth Management's Chief Investment Office said opportunities in China are expanding and becoming more balanced, with semiconductor equipment remaining its top pick in technology. According to Sina Finance, it said the upcoming second-quarter earnings could help drive a revaluation of large internet companies.

The firm said sector rotation across Asian markets is becoming more visible, with earlier laggards such as the MSCI China Index significantly outperforming other East Asian markets. It added that the broadening of gains is expected to continue.

UBS Wealth Management also said earnings are gradually stabilizing across industries, while the structural growth logic of AI remains unchanged. It said localization efforts and demand from domestic hyperscale cloud service providers continue to support China's local hardware supply chain.

According to Sina Finance, the firm said upcoming results may offer clearer signals for China's internet sector, including whether cloud growth is accelerating, progress in AI monetization, and margins in core businesses.

It also said ongoing share buybacks, potential AI asset spin-offs, and a more stable regulatory environment should add support to the sector's revaluation. Beyond technology, it remains bullish on power and healthcare, and said banks, insurers, selected utilities, and consumer staples have defensive cash flow and yields in volatile markets.