‘Makes a lot of sense’: UBS is bullish on China tech stocks as AI ecosystem grows

China's expanding AI ecosystem and easing U.S.-China tensions are reviving the case for Chinese equities, in particular the technology sector, according to UBS. Suresh Tantia, head chief investment officer of Asia equity strategy at UBS Global Wealth Management, told CNBC's " Squawk Box Asia " that easing tensions between Washington and Beijing after last week's Trump-Xi summit should allow investors to refocus on market fundamentals rather than geopolitical escalation risks. "It seems like both countries are following the policy of live and let live, and that's not bad news from a market perspective, because markets can go back to fundamentals," Tantia said Tuesday. So far this year, Chinese equities have lagged behind regional peers such as South Korea and Taiwan that have been riding the tech boom. Tantia, however, said the outlook for the country's technology sector remains underpinned by structural growth in AI-related investment. "What we can see is that China is building its own AI ecosystem, similar to what the U.S. has done, and that AI ecosystem is going to create a lot of investment opportunities for domestic companies. And the market is huge," he said. Tantia pointed to strong earnings from Chinese technology firms, particularly in cloud computing. Chinese tech giant Baidu on Monday posted a 49% surge in revenue in its AI-focused business to 13.6 billion yuan ($2 billion). …