Morgan Stanley-China Equity Strategy A-Share Sentiment Improved Upon Recen...-106149363

MJanuary25,202409:00PMGMTUpdateChinaEquityStrategyAsiaPacificMorganStanleyAsiaLimited++8522848-6853A-ShareSentimentImprovedLauraWangUponRecentPolicyNewsEquityStrategistSentimentpickedupasthemarketanticipatesthereportedA-Laura.Wang@morganstanley.comsharerescueplan,theannouncedRRRcutandotherpolicyactions.Inourview,morecoordinatedmarketstabilizationMorganStanleyAsia(Singapore)Pte.++656834-8172effortscombinedwithsufficientmacrostimuluspolicyareessentialforasustainablestockmarketrecovery.JonathanFGarnerA-shareinvestorsentimentimprovednotablyvs.thepriorweek:WeightedandEquityStrategistsimpleMSASIrose6pptand10ppt,to41%and34%,respectively.BothaveragedailyJonathan.Garner@morganstanley.comturnover(ADT)forChiNextandA-sharesduringJanuary18-24increased14%vs.thepriorcycle;ADTforNorthboundandequityfuturesduringJanuary18-24wereupMorganStanleyAsiaLimited++8522848-7293evenmore,by31%and50%,respectively,vs.thepriorcycle.RSI-30Dincreased18pptduringthesameperiod.DownwardconsensusearningsestimaterevisionsRaymondKLiuseemtohavetore-accelerated,however,asweapproachtheannualresultsseason.EquityStrategistNorthboundsawnetoutflowsofUS$126mnduringJanuary18-24,acontinuationRaymond.K.Liu@morganstanley.comoftheoutflowcyclesincethestartofAugust,despiteatemporaryhaltinlateDec-23:NorthboundMTDtotalnetoutflowsreachedUS$3.7bn.SouthboundsawMorganSta...