Morgan Stanley issued a report saying that the United States has completed the formulation of the provisions under the Accountability Act for all foreign companies, reiterating its short-term cautious view of the MSCI China Index, while paying attention to the volatility of the real estate market, the economic slowdown, regulatory risks and the risk of a resurgence of the epidemic. The bank is cautious about American depositary securities (ADR) and Internet stocks.
Morgan Stanley said that the preferred A shares, which are not affected by the delisting of Chinese stocks, are more in line with the policy trend of the Internet and green economy, and long-term liquidity is also supported. According to the bank, Internet platforms were the most affected, followed by entertainment and media, cars (electric cars) and consumer stocks, and the bank continued to reduce its holdings of retail (e-commerce) stocks.