Morgan Stanley-China Equity Strategy A-Share Sentiment Stayed Flat amid Lu...-106287541

MFebruary1,202409:00PMGMTUpdateChinaEquityStrategyAsiaPacificMorganStanleyAsiaLimited++8522848-6853A-ShareSentimentStayedFlatLauraWangamidLukewarmMacroPrintEquityStrategistInvestorsentimenthasstagnatedsincelastweek'stemporaryLaura.Wang@morganstanley.comexcitementaboutpotentialpolicyshift.Weseenear-termheadwindsahead,andaroundCNY,whichstillsuggestscaution.MorganStanleyappreciatesyoursupportinthe2024InstitutionalInvestorAll-AsiaA-shareinvestorsentimentstayedlargelyflatvs.thepriorweek:WeightedResearchTeamSurvey.RequestyourballotMSASIremainedflatat41%,andsimpleMSASIdecreased1ppt,to33%.Averagehere.dailyturnover(ADT)forChiNext,NorthboundandequityfuturesduringJanuary25-31decreased2%,18%and3%,respectively,vs.thepriorcycle;whileADTforA-Exhibit1:MSA-shareSentimentIndicatorsharesduringJanuary25-31rose4%vs.thepriorcycle.RSI-30Ddecreased5ppt(MSASI):41%(weighted),sameasJanuary24duringthesameperiod.Downwardconsensusearningsestimaterevisionshascontinueditsre-acceleration,consistentwithourexpectation,asweenterannual100%MSASI(Simple)=6000resultsseason.90%MSASI(Weighted)80%MSASI(Simple)Current5500NorthboundsawnetinflowsofUS$1.8bnduringJanuary25-31,endingthree70%MSASI(Weighted)Current75%straightweeksofnetoutflows:NorthboundMTDtotalnetoutflowsreachedUS60%CSI300(RHS)$1.9bn.SouthboundsawnetinflowsofUS$390mn,January25-31.SouthboundM...