MSCI China Index big pump 20% Morgan Stanley is optimistic about AI and new consumption themes

This morning, the MSCI China Index rose, extending its gain to 20% from its April low. As things stand, the bullish trend in the Chinese stock market is indeed strengthening. Morgan Stanley said investors are particularly interested in new technologies and new business models in the Chinese market, especially new consumer themes and AI/technology-related themes. Investors have also given more recognition to China’s ability to compete in global technology, such as breakthroughs in artificial intelligence and advances in areas such as electric vehicles, batteries, and humanoid robots, and have begun to rethink their strategy of investing in both Chinese and American markets in a multipolar world. In terms of exchange rates, Morgan Stanley has shifted its view of the renminbi from depreciation to appreciation against the dollar. This shift reflects its expectation of a weaker dollar, which is expected to fall to 89 by the end of 2026. At the same time, the euro is also expected to appreciate by more than 10% against the dollar. However, Morgan Stanley expects the renminbi to appreciate relatively modestly against the dollar by the end of 2026, possibly reaching 7.05.