MORGAN STANLEY fund says last week’s market divergence persisted, driven by
continued AI-chain strength and catalysts in parts of the supply chain; IPO
expectations for two domestic memory giants boosted related stocks. Margin
financing has surged since May—growth second only to August last year—with the
financing balance briefly near 2.9 tln yuan last week. Electronics and telecom
sectors logged net margin financing purchases above 100 bln yuan. Extreme,
concentrated trading is producing violent swings that release rather than
accumulate risk; with risk appetite low, capital has clustered in high‑momentum
areas. Given a recent easing in external geopolitical tensions, opportunities
are expected to diffuse from a few core plays into a wider set of technology
names, though some large‑cap non‑tech stocks may be capped if the market
re‑heats. At the security level, AI remains the most favored exposure and is
lifting semiconductors and upstream components/materials; selected pockets in
energy storage, machinery and chemicals show improving demand.
