Ge Long Hui·2025-10-23 05:43Core Viewpoint - Morgan Stanley's report indicates that the MSCI Hong Kong Index (MXHK) has returned 26% in USD terms year-to-date, and its forecasted P/E ratio for the next 12 months remains 0.3 standard deviations below the 10-year average, making Hong Kong one of the cheapest markets in the Asia-Pacific region, excluding ASEAN [1] Group 1: Market Performance - The recovery trend in Hong Kong has been significant since 2023, with strong performance in financial markets and a stabilizing residential property market [1] - The valuation of Hong Kong is relatively low compared to historical levels and other markets, suggesting a sustainable inflow of capital [1] Group 2: Future Outlook - Morgan Stanley has raised its year-end targets for the MXHK to 13,000 points for the basic scenario and 14,000 points for the optimistic scenario [1] - The firm holds a positive outlook for next year, favoring investments in companies such as Hong Kong Exchanges and Clearing, Futu Holdings, Galaxy Entertainment, MGM China, Techtronic Industries, China State Construction International, Henderson Land Development, and MTR Corporation [1] Group 3: Sector Ratings - The communications services sector rating has been upgraded to "Overweight" [1]