UBS: Iran conflict causes speculative funds to prioritize returning to domestic safe havens, but Chinese stocks are expected to outperform the global market by 5% this year

WealthCoffee · 2026-03-16T08:23:15+00:00

Iran conflict pushes dollar index above 100, funds flow to safe-haven assets. UBS's Fang Dongyun believes investors are optimistic about Chinese assets, expecting Chinese stocks to outperform the global market by more than 5% in 2026, with the MSCI China stock index expected to rise 15%-20% annually.

WealthCoffee

2026-03-16 08:23:15

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【Caixin News】 The Iran conflict continues, and the US dollar index has risen back above the 100 mark. On March 16, Fang Dongming, head of the Global Financial Markets Department in China at UBS, told Caixin that after geopolitical conflicts and other unexpected events, funds tend to flow into safe-haven assets first. As the global reserve currency, the US dollar receives inflows. However, since 2026, conversations with leading institutional investors in the US, Canada, and other countries reveal that investors have a very positive outlook on Chinese assets in the medium to long term, with significantly increased attention to Hong Kong.

Fang Dongming also pointed out that in 2026, Chinese stocks are expected to outperform the global market by more than 5%. In terms of absolute performance, core indices such as the MSCI China Stock Index are expected to achieve annual gains of 15% to 20%.

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