Morgan Stanley-China Equity Strategy Sector Allocation and Focus List Chan...-109913653(1)

MIdeaChinaEquityStrategy|AsiaPacificSectorAllocationandFocusListChanges:BeMoreDefensiveWeaddCCB-H(0939.HK),PetroChina-A(601857.SS),MTR(0066.HK),andremoveBaosteel(600019.SS)andTrip.com(TCOM.O)toourChina/HKFocusListandA-shareThematicList,followingsectorallocationchangesbelow.Weadvisemoredefensiveness,andwaitforsignsofapolicypivot.MorganStanleyAsiaLimited+LauraWangEquityStrategistLaura.Wang@morganstanley.com+8522848-6853ChloeLiuEquityStrategistChloe.Liu1@morganstanley.com+8522848-5497CatherineChenEquityStrategistCatherine.Chen@morganstanley.com+8523963-4186MorganStanleyAsia(Singapore)Pte.+JonathanFGarnerEquityStrategistJonathan.Garner@morganstanley.com+656834-8172Exhibit1:China/HKFocusListChangeCompanyNameSectorTickerChinaConstructionBankFinancials0939.HKMTRCorpIndustrials0066.HKBaoshanIron&SteelMaterials600019.SSTRIP.COMConsumerDiscretionaryTCOM.OAddPetroChinaAEnergy601857.SSRemoveBaoshanIron&SteelMaterials600019.SSFocusListChangesChina/HKFocusListChinaA-shareThematicFocusListAddRemoveSource:MorganStanleyResearchExhibit2:Chinasector/industrygroupallocation–MovingBankstoEW,TelecomtoOW;ConsumerDiscretionarytoEW;maintainMaterialsatOW,butcutactiveriskexposureto50bps-100-50050100150MaterialsUtilitiesTelecomSvsIndustrialsRetailingMedia&EntBanksInsuranceDivFinEnergyConsumerDiscretionaryITAuto&CompConsumerStaplesRealE...