Morgan Stanley Prefers A-Shares Over Hong Kong and Offshore Markets

Morgan Stanley has expressed a preference for A-shares over Hong Kong and offshore markets, citing lower sensitivity to global geopolitical uncertainties. According to Jin10, analysts including Laura Wang highlighted that the motivation for southbound funds into Hong Kong stocks is also slowing. They recommend focusing on tangible assets rather than index allocations when selecting stocks. The report maintains a positive outlook on the materials, industrial, and semiconductor sectors, while upgrading the energy sector from underweight to equal weight.