Morgan Stanley-China Equity Strategy 2024 China SOE Reform Stock Opportuni...-106630476

MFebruary21,202409:00PMGMTMorganStanleyAsiaLimited+IdeaChinaEquityStrategyAsiaPacificLauraWang+8522848-6853+8523963-41862024ChinaSOEReformStockEquityStrategist+8522848-7293Opportunities:ContinuationofaLaura.Wang@morganstanley.comMulti-YearThemeCatherineChenTheSOEreformthemerecentlygainedinvestors'attentionastop-downpolicyfocusseemstohavereturned.WereiterateitasEquityStrategistalong-terminvestmenttheme.Anupdated36-stocklistisCatherine.Chen@morganstanley.comprovided.RaymondKLiuEquityStrategistRaymond.K.Liu@morganstanley.comRighttimetorevisittheSOEreforminvestmenttheme:BackinMarch2023,weMorganStanleydoesandseekstodobusinesswithlaidoutSOEreformdetails(seeChinaSOEReforms:AMulti-YearThemewithStockcompaniescoveredinMorganStanleyResearch.Asaresult,Opportunities),andnotedthatVSCC("ValuationSystemwithChineseinvestorsshouldbeawarethatthefirmmayhaveaconflictofCharacteristics")wouldbeamulti-yearthemethatwouldbeworthrevisitingforinterestthatcouldaffecttheobjectivityofMorganStanleylong-termpositioning,withaselectivefocusonhighqualitystocks.Research.InvestorsshouldconsiderMorganStanleyResearchasonlyasinglefactorinmakingtheirinvestmentMSSOEreformstocklistdeliveredstrongoutperformancerelativetobothdecision.broadmarketindexandtheoverallSOEuniversesinceourlastreport(8.2%,5.2%,and4.5%alphavs.offshoreMSCIChina,A-shareCSI300,andCSI...