China still the 'most attractive' among emerging markets: UBS

The impact on the Chinese economy from the trade tariffs will be small, and China markets are still attractive despite slumping this year, said Catherine Cai, chairman of UBS's Greater China investment banking arm.

China markets have tumbled more than 20 percent this year, which experts have attributed to the volatility over the trade war with the U.S.

The market's reaction has been overblown, Cai suggested, pointing to the "pretty healthy" growth potential of most Chinese corporations. The latest news on the additional round of U.S. tariffs on Chinese goods did not "totally surprise" everyone, she said, given that investors knew they would likely come.