Morgan Stanley-China Equity Strategy 4Q23 Pre-Announcements Major Deterio...-106408883

MFebruary7,202409:00PMGMTIdeaChinaEquityStrategyAsiaPacificMorganStanleyAsiaLimited++8522848-6853+8523963-41864Q23Pre-Announcements:LauraWang+8522848-7293MajorDeteriorationEquityStrategist+656834-81724Q23alertshavesetanewrecordlowsince2020(net-4.2%Laura.Wang@morganstanley.comforMSCIChinasince2018vs.net-14.2%forA-shares).Deteriorationisbroad-basedacrosssectorsandcompanysize,CatherineChenwithrelativeresilienceskewedtowardslargercaps.Namestoown/avoidarelistedbasedonearningsvisibility.EquityStrategistCatherine.Chen@morganstanley.comAsofFebruary5,2024,2,798A-sharecompanies(~54%ofallA-sharelistings,~42%bymarketcap)hadreleased4Q23pre-announcements,withamajorRaymondKLiudeteriorationcomparedtopreviousquarters:EquityStrategist•4Q23A-sharespre-announcementsaggregatedanet-14.2%(bynumberofRaymond.K.Liu@morganstanley.comcompanies),asignificantdecreasevs2Q23(net-4.2%).MorganStanleyAsia(Singapore)Pte.+•Companiesacrosslarge-cap,mid-cap,andsmall-caphaveallseensignificantdeteriorationandrecordedtheworstpre-announcementJonathanFGarnerresultssince1Q20(Exhibit4).Bynumberofcompanies,22outof24industrygroupssawnetnegativealerts:AllindustrygroupsexceptAutosEquityStrategisthadmorenegativethanpositivealerts(Exhibit5).Jonathan.Garner@morganstanley.comSimilardeteriorationwasobservedforMSCIChinauniverse(basedon258alerts,Exhibit1:A-sharep...