March 8, 2023Morgan Stanley, a world-renowned investment bank, released the latest report saying that global funds are showing a trend of returning to China**. As some ** pessimism about the Chinese market gradually eases,The withdrawal of global long-term investors from A-shares and Hong Kong stocks has been temporarily stalled.
Changes in the flow of foreign capital:
In February, China's capital outflows slowed, and regional active players began to increase their holdings in growth and technology stocks.
Northbound funds continued to flow into A-shares, and the cumulative increase in A** positions in February was as high as 6074.4 billion yuan, a 13-month high.
Foreign giants JPMorgan Chase and HSBC frequently appear in the top 10 of the net inflow of northbound funds.
A-shares regain their attractiveness:
The valuation of A-shares is relatively low, and there is some room for upward adjustment.
China's economy has stabilized and rebounded, and the service PMI has maintained expansion for 14 consecutive months.
Favorable regulatory policies have supported the development of the private economy and stabilized the real estate market.
Analyst Perspective:
Morgan Stanley: The outflow pressure of A-shares and Hong Kong stocks is basically over, and there is still room for upside in the A** market in the future.
BCA Research: A-shares have reached an oversold state, and more tactical upside is expected.
East Capital Asset Management: Many investors are underweight China and need to reconsider** their deployment as soon as possible.
Investment Strategy:
Focus on low-valuation, high-growth sectors such as technology and growth.
Pay attention to the sectors that benefit from the stabilization and rebound of the economy, such as consumption and medicine.
Hold for a long time and share the dividends of China's economic growth.
Risk Warning:
There is still a certain risk of volatility in the A** market, so you need to invest carefully.
It is necessary to pay attention to the macroeconomic situation and policy changes at home and abroad.