Morgan Stanley Fund: Structural Opportunities Continuously Emerging in Multiple Areas of A-Shares

Recently, the A-share market has experienced increased volatility. In response, Morgan Stanley Fund expressed its view that although the sentiment factors currently driving the market have declined, it remains not pessimistic about the market as a whole. Since the beginning of this year, domestic export performance has consistently exceeded expectations. The diversification of China's external demand structure, the improved cost-effectiveness brought by declining export prices, and the further highlighting of the advantages of Chinese manufacturing are all supporting forces that cannot be ignored.

Morgan Stanley Fund further believes that the overall Return on Equity (ROE) of A-share listed companies (excluding the financial and petrochemical sectors) has stabilized and stopped declining in the semi-annual reports, and it is expected to further recover in the third-quarter reports, indicating that the driving force of fundamentals is beginning to emerge.

"Generally, the market's reaction to sentiment factors is relatively short-term, and their impact may gradually diminish in the future. Since the beginning of this year, the market's main trend has been relatively clear, highly concentrated in the high-growth AI sector. Recently, profit expectations for some companies have been revised upwards again, indicating that fundamentals have not deteriorated. At the same time, structural opportunities in areas such as resource products, innovative drugs, and high-end manufacturing are continuously emerging. The core factor supporting the market in the future will be the steady improvement in the profitability of listed companies against the backdrop of the continuously enhancing advantages of Chinese manufacturing. We are currently witnessing such positive changes," stated Morgan Stanley Fund.