The number of overseas investors favoring the ChiNext board has grown significantly, although half of them believe its growth reflects a bubble that can burst, according to a report released by UBS Securities on Monday.

The report said almost all the investors visited recently paid attention to the ChiNext board because it had strong market performance and ample liquidity. Half of them believe there is a serious bubble in the market, but did not think it would burst soon.

The condition of the main board remained weak and all investors indicated concerns about it based on the gloomy economy, credit risk, property sales decrease and RMB depreciation. Shares in cyclical and financial sectors were the least popular.

Benefiting from the ongoing annual sessions of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference, investors can seek opportunities in the sectors of environmental protection, electrical power, railways, dairies, household appliances and new-energy automobiles, the report said.

The ChiNext board, which started trading on Oct 30, 2009, is home to high-tech companies and those with high growth potential.