Morgan Stanley-China Equity Strategy A-Share Sentiment Remained Flat as De...-106018305

MJanuary18,202409:00PMGMTUpdateChinaEquityStrategyAsiaPacificMorganStanleyAsiaLimited++8522848-6853A-ShareSentimentRemainedLauraWangFlatasDeflationPersistsEquityStrategistSentimentshowsnosignsofimprovementamidlacklusterLaura.Wang@morganstanley.commacrodataandtightfreeliquidityinDecember.WeremaincautiousintheneartermgiventhepolicyvacuumandtheMorganStanleyAsia(Singapore)Pte.++656834-8172upcomingpressurefromearningsseason.Wediscusskeysignstomonitorandrecommendedstrategy.JonathanFGarnerA-shareinvestorsentimentremainedlargelyflatvs.thepriorweek:SimpleEquityStrategistMSASIremainedflatat24%andWeightedMSASIdeclined1ppt,to35%.AverageJonathan.Garner@morganstanley.comdailyturnover(ADT)forChiNextandA-sharesduringJanuary11-17declined3%and2%,respectively;ADTforequityfuturesimproved9%andADTforNorthboundMorganStanleyAsiaLimited++8522848-7293remainedflatcomparedtothepriorfive-daycycle(January4-10).RSI-30Ddecreased3pptacrossthesameperiod.ConsensusearningsestimaterevisionRaymondKLiubreadthremainedwithinnegativeterritory,butthedownwardmomentumhassloweddownsincelateNovember2023.EquityStrategistRaymond.K.Liu@morganstanley.comNorthboundnetoutflowstotaledUS$2.3bnduringJanuary11-17,continuingtheoveralloutflowtrendsinceAugust2023:NorthboundMTDtotalnetoutflowsMorganStanleyappreciatesyoursupportinreachedUS$3.6bn,whileSouthboundrecordedn...