UBS: China On The Ground - Jan 2026: Key Words: Self-Sufficiency and Overseas
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UBS's January 2026 China field research highlights accelerating semiconductor self-sufficiency and persistent corporate overseas expansion as dominant investment themes. Within the technology sector, UBS expresses growing confidence in robust Chinese AI capital expenditure for 2026, despite lingering uncertainties surrounding H200 GPU imports. Domestic AI inference and vertical application demand present further upside potential. Semiconductor localization is progressing steadily, particularly in advanced etching, deposition equipment, and packaging technologies.
In the industrial space, overseas expansion remains the primary growth catalyst. Kstar reported positive growth in US-related UPS orders, anticipating strong 2026-2027 demand driven by AIDC power requirements. Megmeet, listed on NVIDIA's recommended vendor list for server power supply units since 2024, remains optimistic about increasing overseas shipments and market share in 2026. Healthcare companies continue to prioritize international expansion, though market sentiment cooled slightly in early January.
A heatmap analysis of corporate visits reveals notable sector rotation. Capital goods, media and entertainment, and real estate witnessed the largest month-over-month increases in investor visits. Conversely, semiconductors, automobiles, and tech hardware experienced declining visit volume. UBS's quantitative crowding data indicates that real estate and healthcare equipment remain uncrowded despite rising interest, while semiconductors and tech hardware stay relatively crowded. Top recommended stocks include NAURA, JCET, Horizon Robotics, Baidu, and GDS.