Morgan Stanley-China Equity Strategy A-Share Sentiment Dropped ahead of Re...-105870796

MJanuary11,202409:00PMGMTUpdateChinaEquityStrategyAsiaPacificMorganStanleyAsiaLimited++8522848-6853A-ShareSentimentDroppedLauraWangaheadofResultsSeasonEquityStrategistThelatestonshoreassetmanagementfirmbankruptcy,Laura.Wang@morganstanley.comdownwardpressureonearningsestimates,andpotentialnear-termpolicyvacuumarelikelytodetersentimentrecovery.FocusMorganStanleyappreciatesyoursupportinonalpha-generatingopportunities.Monitorsignsofpropertythe2024InstitutionalInvestorAll-Asiamarketstabilizationandwaningdeflationarypressure.ResearchTeamSurvey.Requestyourballothere.A-shareinvestorsentimentdeclinedvs.thepriorweek:WeightedandsimpleMSASIsdecreased4pptand5ppt,to36%and24%,respectively.ComparedtotheExhibit1:MSA-shareSentimentIndicatorpriornine-daycycle(December21-January3),averagedailyturnover(ADT)for(MSASI):36%(weighted),downby4pptvs.ChiNextandA-sharesduringJanuary4-January10decreased14%and8%,January3respectively,whileaveragedailyturnoverforNorthboundincreased2%.RSI-30Ddecreased13pptduringthesameperiod.Consensusearningsestimaterevision100%MSASI(Simple)=6000breadthremainedinnegativeterritory,butthedownwardmomentumhasslowed90%MSASI(Weighted)sincetheweekofNovember22.80%MSASI(Simple)Current550070%MSASI(Weighted)Current75%NorthboundnetoutflowstotaledUS$782mnduringJanuary4-10,largely60%CSI300(RHS)continuingtheoutflowtrendsinc...