Core Viewpoint - Morgan Stanley reports that the renewed US-China tensions since last Thursday are increasing geopolitical risk premiums [1] Group 1: Geopolitical Risks - The bank has previously warned about high thresholds for the upcoming US-China trade negotiations in November [1] - The Shanghai Composite Index faces downward pressure on earnings per share estimates during the third-quarter earnings announcement period [1] - The stabilization of the 10-year US Treasury yield will limit the easing space for equity risk premiums [1] Group 2: Investment Opportunities - If risk-averse sentiment deepens, there may be opportunities to increase positions in China and rotate back to growth concept stocks [1] - Key upcoming events include the Fourth Plenary Session (October 20-23), the APEC meeting in South Korea (October 29-30), the deadline for extending US-China trade tariffs (November 10), and the third-quarter earnings announcements in October and November [1] Group 3: Sector Ratings Adjustments - The bank upgraded the consumer staples sector rating to "overweight" [1] - The ratings for the consumer discretionary/healthcare sectors were downgraded to "in line with the market" [1] - Recommendations include shifting from crowded growth concept stocks to quality laggards in various sectors, such as Haier, Midea, Mengniu, Yili, and Master Kong in consumer, PetroChina in energy, CCB in finance, China Mobile, China Telecom, and Unicom in communications, and China Yangtze Power in utilities [1]