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 has peaked, and further improvement in AI commercialization could underpin related names. She advis

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 has 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.