UBS Equity Preference List China Onshore Tech 2026 08 21

21 August 2026, 13:23 UTC Chief Investment Office GWM Investment Research

China Onshore Tech Equity preferences

The Chinese government continues to support tech self-sufficiency amid flaring geopolitical tensions. We view China’s technology companies across Allen Pu semiconductors, software, and automation as the primary beneficiaries of this UBS AG Hong Kong Branch effort, and we expect multi-year policy support to drive a valuation rerating of the technology sector. Eva-C Lee At several important nationwide meetings, China’s government has reaffirmed UBS AG Hong Kong Branch its commitment to technological innovation and breakthroughs, with consistent state-funded investment and a further adoption of state-owned enterprises (SOEs) and government departments. Please see important disclaimers and disclosures at the end of this Its “Digital China” policy outlines growth for the digital economy through 2035 document. and helps form guidelines for development of several important technologies.

We see several attractive investment opportunities emerging as the new technology policy and the economic cycle drive events in a sector, which we believe still offers deep value versus history.

Latest Changes: We have added CXMT Corporation and removed Shenzhen Inovance Technology. We also updated the “Company profile” texts for Advanced Micro-Fabrication Equipment and Luxshare Precision Industry.

Benchmark: MSCI China A Onshore Information Tech

Most Preferred Company Changes* Currency Weight

Advanced Micro-Fabrication Equipment CNY 6.7% Cambricon Technologies CNY 6.7% CXMT Corporation Added CNY 6.7% Foxconn Industrial Internet CNY 6.7% JCET Group CNY 6.7% Jiangsu Hengli Hydraulic CNY 6.7% Luxshare Precision Industry CNY 6.7% Montage Technology CNY 6.7% NAURA Technology Group CNY 6.7% Shengyi Technology CNY 6.7% Shennan Circuits CNY 6.7% Shenzhen Inovance Technology Removed CNY 6.7% Universal Scientific Industrial CNY 6.7% Weichai Power - A CNY 6.7% Wuxi NCE Power CNY 6.7% Zhejiang Sanhua Intelligent Controls CNY 6.7%

Source: UBS, Consider potential trading restrictions, all figures are rounded *Changes since the last publication

Chief Investment Office GWM, 21 August 2026 Page 1 of 17

At several important nationwide meetings, China’s government has reaffirmed its commitment to technological innovation and breakthrough with consistent state- funded investment and further adoption of state-owned enterprises (SOEs) and government departments.

For instance, China has invested billions in the past decade in semiconductor self- reliance. The scale of its National Integrated Circuit Investment Fund, or the so- called “Big Fund,” reached USD 45bn after the latest injection. This support has helped the expansion of domestic design houses, or so-called fabless, and packaging vendors.

Its “Digital China” policy outlines growth for the digital economy through 2035 and helps form guidelines for several important technology development.

The continued innovation of China’s AI models has been lowering AI development costs, and is expected to drive the growth of AI applications. This is expected to benefit the development of domestic LLMs, cloud, AI devices, IT equipment, and data center development. China tech companies listed on the onshore market, with broad exposure to hardware and semiconductors, are expected to be the main beneficiaries.

Overall, we expect these new strategic initiatives to be underpinned by multi-year policy support, which should be mutually reinforcing. We see several attractive investment opportunities emerging as the new technology policy and the economic cycle drive events in the sector, which we believe still offers deep value versus history.

Chief Investment Office GWM, 21 August 2026 Page 2 of 17