Morgan Stanley China equity chief strategist Wang Ying said in a note that late
July through August could be a key window for a sustained rebound in Hong Kong
and mainland Chinese equities. She noted recent outperformance versus major
global peers has been partly driven by continued southbound Stock Connect
inflows. Wang said Q2 results from e-commerce firms may show the profit hit from
price wars have peaked, and further improvement in AI commercialization could
underpin related names. She advised investors significantly underweight Hong
Kong and mainland equities to consider using recent volatility to gradually add
fundamentally stronger stocks.
