A theme of using Chinese tech stocks to hedge against the U.S. dollar is gaining traction, according to UBS (UBS). The U.S. Dollar Index, which tracks the dollar’s performance against a basket of six major global currencies, is set to finish this week down by 1%, marking its worst weekly loss since June 2025.
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“We like China tech in particular because there’s some success there,” UBS Global Wealth Management CIO Mark Haefele told Reuters at the World Economic Forum. “There also seems to be government support.”
UBS Highlights Opportunity in China Tech Stocks
UBS notes that clients in the U.S., Europe, and Asia are growing bullish on Chinese tech given their low valuations and the accommodative fiscal policies set by the government. The bank acknowledges that the U.S. is the global leader in tech, although China is unique because of its ability to innovate with limited resources.
UBS Head of Global Equities, Ulrike Hoffman-Buchardi, expects fiscal stimulus to benefit global growth, creating opportunities in regions trading at attractive valuations.