Morgan Stanley-China Equity Strategy A-Share Sentiment Jumped Amid Positiv...-106428639

MFebruary8,202409:00PMGMTUpdateChinaEquityStrategyAsiaPacificMorganStanleyAsiaLimited++8522848-6853+8523963-4186A-ShareSentimentJumpedLauraWangAmidPositivePoliciesEquityStrategistInvestorsentimentimproveduponaseriesofpositiveequityLaura.Wang@morganstanley.commarketstabilizationefforts.Focusonalphaopportunities(earningscertainty,SOEreform)whilemonitoringfurtherCatherineChendevelopments.EquityStrategistA-shareinvestorsentimentincreasedmeaningfullyvs.thepriorweek:WeightedCatherine.Chen@morganstanley.comandsimpleMSASIincreasedto51%and47%,by10pptand14ppt,respectively.Averagedailyturnover(ADT)forChiNext,A-shares,NorthboundandequityfuturesExhibit1:MSA-shareSentimentIndicatorduringFebruary1-7increased13%,10%,39%and27%,respectively,vs.theprior(MSASI):51%(weighted),14pptincreasev.s.cycle;RSI-30Dincreased25pptduringthesameperiod.ConsensusearningsJanuary31estimaterevisionscontinueditsdownwardtrend,althoughthespeedhaslessened.100%MSASI(Simple)=6000NorthboundsawnetinflowsofUS$2.9bnduringFebruary1-7,thesecond90%MSASI(Weighted)straightweekofinflowsandUS$1.1bnhigherthanpreviousweekcycle:80%MSASI(Simple)Current5500Meanwhile,SouthboundsawnetoutflowsofUS$762mnfromFebruary1-7.70%MSASI(Weighted)Current75%NorthboundandSouthboundYTDnetinflowsstoodatUS$0.9bnandUS$2.1bn,60%CSI300(RHS)respectively.50%500040%Marketsentimentroseuponanumb...