Core Insights - Morgan Stanley reports a significant increase in American investors' interest in Chinese stocks, the highest since the COVID-19 pandemic, particularly in AI humanoid robots, biotechnology, and innovative consumer sectors [1] - Over 90% of investors met during the roadshow expressed a willingness to increase their allocation to China, marking the highest level since the peak of the Chinese stock market in early 2021 [1] - Factors driving this renewed investment interest include China's global leadership in certain tech sectors, stabilizing economic policies from Chinese policymakers, and improved market liquidity [1] Group 1 - American investors' interest has expanded beyond ADRs and internet sectors to include A-shares, with a focus on themes like AI, semiconductors, and humanoid robots [2] - Historically, American investors concentrated on ADRs due to time zone limitations, but recent trends show a shift towards A-shares and Hong Kong stocks for thematic investments [2] - Quantitative and macro funds have indicated that using A-share ETFs and index futures is a quick and direct method to participate in the Chinese market when resources for bottom-up stock selection are limited [2]

Group 1: Market Overview - The global capital rebalancing trend is shifting from US stocks to non-US markets, creating a significant window for value reassessment in A-shares and Hong Kong stocks [1][4] - As of July 15, 2023, Korean investors have traded over $5.4 billion in Chinese mainland and Hong Kong stocks, making China the second-largest overseas investment destination for them, following the US [4][5] Group 2: Investment Strategy - The investment strategy of Fidelity Fund, led by Zhang Xiaomu, focuses on growth stocks, particularly in sectors benefiting from global capital rebalancing and China's economic transformation [1][2] - Zhang Xiaomu's internal assessment in August 2022 deemed A-shares as "gold mines," leading to a strategic shift from value stocks to growth stocks in the Fidelity fund portfolio [2][3] Group 3: Performance Metrics - Fidelity Fund's equity products achieved a return of 12.24% in the first half of 2023, ranking first among foreign public funds and within the top 10 in the overall market [1][2] Group 4: Sector Focus - Zhang Xiaomu emphasizes the "one super three strong" investment direction, identifying artificial intelligence as the super track, alongside aerospace, low-altitude economy, and innovative consumption as key sectors [1][7] - The current valuation of the Hong Kong market, with a price-to-earnings ratio just above 10, presents a significant advantage compared to other major markets, indicating a favorable investment environment [6] Group 5: Future Outlook - The market is expected to maintain a growth-oriented trend, with a focus on sectors that align with China's economic transformation and innovation [7][8] - The "engineer dividend" and "scientist dividend" are anticipated to drive China's global competitiveness, presenting investment opportunities in innovative sectors [8]