The world’s largest wealth manager UBS says it is steering clear of Australia’s sharemarket in favour of China, betting that the blistering rally in that country’s technology sector has further to run.

That’s because the $US4.1 trillion ($6.5 trillion) investment giant thinks Australian equities are just too expensive given earnings are only expected to increase slightly in the 2025 financial year after contracting 5 per cent in the previous 12 months.