[UBS: Valuation of China's AI technology hardware is near historical lows and risk returns are becoming attractive again] On October 28, UBS released a China stock strategy report stating that after the recent adjustment led by technology stocks, China's main index has fallen by 18% this year, and the AI-related technology hardware stocks tracked by the bank have only risen by 9% this year. The bank believes that concerns about AI fundamentals have been over-amplified, valuations are close to historical lows, and risk-returns have become attractive again. When investors reorganize their portfolios at the end of the year for the new year, attention may pick up. The bank pointed out that technology hardware profit growth remains strong, and most AI technology stock profit forecasts have been raised by 12% to 15% in the past three months. However, valuations are close to historical bottoms and imply a sharp slowdown in future earnings growth. Historically, when valuations reach similar levels, the underlying shares have risen by more than 50% on average in the following 12 months. The congestion and financing data tracked by the bank show that the net position of "hot money" has fallen back to the level at the beginning of the year, the short-selling ratio of Hong Kong stocks is also close to historical highs, and short-selling of some AI technology hardware stocks has increased recently.