Morgan Stanley-China Equity Strategy A-Share Sentiment Increased on Price ...-105743062

MJanuary4,202404:00PMGMTUpdateChinaEquityStrategyAsiaPacificMorganStanleyAsiaLimited++8522848-6853+8523963-4186A-ShareSentimentIncreasedonLauraWangPriceRebound,WhileRisksRemainEquityStrategistLaura.Wang@morganstanley.comSentimentimprovedslightlyonhigherturnoverandmarginallybetterpricemomentum.WeremainrelativelycautiousgivenCatherineChencontinuousearningspressure,potentialpolicyvacuumandsofteningmacrogrowth.EquityStrategistCatherine.Chen@morganstanley.comA-shareinvestorsentimentimprovedslightlyvs.thepriorweek:WeightedandsimpleMSASIsincreasedby3pptand4ppt,to40%and29%,respectively.AverageMorganStanleyappreciatesyoursupportindailyturnover(ADT)forChiNext,A-sharesandNorthboundduringDecember21-the2024InstitutionalInvestorAll-AsiaJanuary3increasedby5%,6%and2%,respectively,whileequityfuturesdroppedbyResearchTeamSurvey.Votingwillopen19%comparedtothepriorfive-daycycle(December14-20).RSI-30DincreasedbyearlyJanuary2024.35pptduringthesameperiod.Consensusearningsestimaterevisionbreadthremainedinnegativeterritory,butthedownwardmomentumhasslowedsincetheExhibit1:MSA-shareSentimentIndicatorweekofNovember22.(MSASI):40%(weighted),upby3pptvs.December20NorthboundnetinflowstotaledUS$1.9bnduringDecember21-January3,endingthesixthstraightweekofnetoutflows:NorthboundDecembernetoutflows100%MSASI(Simple)=6000reachedUS$1.8bn,while2023total...