Morgan Stanley's Chief China Equity Strategist, Wang Ying, stated in a report that late July to August could be a crucial period for a sustained recovery in Hong Kong and Chinese stock markets. She pointed out that in recent weeks, Hong Kong and Chinese stock markets have outperformed other major global markets, partly due to the continued inflow of southbound capital. Wang Ying indicated that this period could be critical to maintaining the market's upward momentum, as the second-quarter results released by e-commerce companies may demonstrate that the impact of price wars on corporate profits has peaked. She added that further improvements in the commercialization prospects of artificial intelligence could also provide support for related stocks. For investors currently holding significantly underweight positions in Hong Kong and Chinese stock markets, it might be worthwhile to take advantage of recent market volatility to gradually accumulate stocks with strong fundamentals.
