Morgan Stanley-China Equity Strategy A-Share Sentiment Edged down as Unbal...-108694961

MJune13,202409:00PMGMTMorganStanleyAsiaLimited+UpdateChinaEquityStrategyAsiaPacificLauraWang+8522848-6853+8522848-7293A-ShareSentimentEdgeddownEquityStrategist+8523963-4186asUnbalancedGrowthLaura.Wang@morganstanley.comContinuesRaymondKLiuA-sharesentimentwentdownamidunbalancedgrowthcausedbystrongexportsandweakdomesticconsumption.WeexpectaEquityStrategistrange-boundmarketneartermbeforemoreconcretesignsofRaymond.K.Liu@morganstanley.commacroimprovementand/ormajorpolicyactionstep-up.Upcomingpolicyeventsareworthwatching.CatherineChenA-shareinvestorsentimentedgeddownvs.priorweek:WeightedMSASIwasEquityStrategistdown1pptto36%andsimpleMSASIfell2pptsto23%vs.thepriorcut-off(June5).Catherine.Chen@morganstanley.comAveragedailyturnover(ADT)forChiNext,A-sharesandNorthboundduringJune6-12decreasedby5.2%,0.2%and0.6%,respectively,vs.thepriorcycle(May30-JuneExhibit1:MSA-shareSentimentIndicator5).Meanwhile,ADTforEquityFuturesincreasedby11.9%inthesameperiod.RSI-(MSASI):36%(weighted),down1pptvs.June30Ddecreasedby3.7pptduringthesamecycle.Consensusearningsestimate5revisionscontinueditsdownwardtrend,althoughthespeedhassloweddown.100%MSASI(Simple)=6000NorthboundsawnetoutflowsofUS$656mnduringJune6-12,whileSouthbound90%MSASI(Weighted)netinflowscontinuedforthe16thconsecutiveweek(sinceFebruary8):80%MSASI(Simple)Current5500NorthboundMTDnetou...