$XCU Morgan Stanley predicts: The Hong Kong stock market in August will see a stronger rebound due to short-covering and inflows of southbound capital. Morgan Stanley said that as shorts cover and southbound funds flow in, the Hong Kong stock market is expected to rebound more strongly in August. The firm noted that current extremely underweight positioning creates a buying opportunity and advised investors to gradually increase their holdings. Global investors’ interest in Chinese stocks is rising, and the firm expects that over the coming months, capital will be gradually reallocated to Chinese stocks. Morgan Stanley emphasized that the Hong Kong market is expected to experience a notable recovery in August, driven by factors including: in the e-commerce sector, the damage to profits from the price war has already peaked; the commercialization of AI will further advance; and pressure from July IPO share lockups may be eased.