UBS Wealth Management Asia-Pacific Investment Director's office released a report stating that recently, DeepSeek has sparked a rebound in the Chinese economy. Although the direct benefits of DeepSeek may be limited, the bank believes that the improvement in the fundamentals of major companies, continued policy support, and the long-term growth impact of artificial intelligence all create room for the Chinese stock market to further appreciate from its still relatively low valuation. The bank has raised its year-end MSCI China Index target from the previous 68 points to 77 points. UBS Wealth Management pointed out that the Standing Committee of the National People's Congress has approved a multi-year local government debt resolution plan totaling 10 trillion yuan. Optimism surrounding the low-cost and high-performance artificial intelligence model of the Chinese AI startup DeepSeek has driven the Chinese stock market (MXCN) up by 17%, with Chinese technology stocks (KWEB ETF) rising by 24% from their mid-January lows, far surpassing the Nasdaq Composite Index (3%). UBS Wealth Management stated that they continue to find the Chinese internet industry attractive and expect a moderate level of returns by the year-end, recommending a focus on selected Chinese internet companies. However, any rebound exceeding the bank's target should be used to reduce and diversify risk exposure. Given the potential uncertainty of US tariffs and Beijing's policy responses, the bank maintains a "neutral" view on the Chinese stock market.