Morgan Stanley: Prefers A-shares over Hong Kong stocks and offshore markets, supported by lower geopolitical sensitivity.

Morgan Stanley stated that they prefer the A-share market compared to Hong Kong and offshore markets, as national team funds may shift to net buying and A-shares are less sensitive to global geopolitical uncertainties. Other reasons for being bullish on the A-share market include the slowing momentum of southbound funds into Hong Kong stocks. They recommend focusing on individual assets rather than index allocations when selecting stocks, maintaining overweight positions in commodities, industrial, and semiconductor sectors, while upgrading the energy sector from underweight to equal weight.