Morgan Stanley(US:MS) 券商中国·2025-06-10 23:28Core Viewpoint - Foreign investors are reassessing Chinese assets, with a notable increase in their willingness to allocate to Chinese stocks due to concerns about missing out on technological advancements in China [2][6][12]. Group 1: Foreign Investment Trends - According to Morgan Stanley, international investors are seeking to diversify their portfolios and are increasingly interested in Chinese stocks, as their current exposure remains relatively low [2][6]. - As of June 10, the Hang Seng Index and the Hang Seng Tech Index have both seen year-to-date gains exceeding 20% [3][11]. - Recent inflows from long-term foreign capital, including global, U.S., and Pacific regional funds, have started to flow into the Hong Kong stock market [15]. Group 2: Market Outlook - Nomura Oriental International Securities predicts that Chinese equity assets will outperform overseas markets in the second half of the year, supported by strong policy backing for growth sectors [4][19]. - The report highlights that the gap between the weight of Chinese stocks in the MSCI Emerging Markets Index (29%) and the actual allocation by global investors (26.6%) indicates significant room for increased investment [13][14]. - Analysts expect that the performance of Hong Kong tech giants will remain robust, with anticipated earnings growth in 2025 [16]. Group 3: Investment Strategies - Nomura suggests a refined "barbell strategy" focusing on dividend and tech growth sectors, as the static valuation of the CSI 300 Index is still undervalued by 25.6% compared to its ten-year average [21]. - The report emphasizes the importance of stable dividend stocks and specific tech growth sectors, such as new energy and new consumption, for the upcoming market environment [21][20]. - Huatai Securities' chief macroeconomist anticipates an upward adjustment in China's economic growth expectations, indicating potential recovery for the RMB and RMB-denominated assets [22].