This morning, the MSCI China Index rose, increasing to 20% from its April low. Judging from the current situation, the bullish trend in the Chinese stock market is indeed strengthening. Morgan Stanley said investors are particularly concerned about new technologies and new business models in the Chinese market, particularly new consumer topics and topics related to artificial intelligence/technology. Investors also gave more recognition to the improvement of China's capabilities in global technology competition, such as breakthroughs in the field of artificial intelligence and progress in the fields of electric vehicles, batteries, humanoid robots, etc., and began to reconsider the strategy of simultaneously investing in the Chinese and US markets in a multipolar world. In terms of exchange rates, Morgan Stanley has changed the view of the RMB against the US dollar from depreciation to appreciation. This shift reflects its expectation that the dollar will weaken, and it is expected that the dollar index may fall to 89 by the end of 2026. Meanwhile, EUR/USD is also expected to appreciate by more than 10%. However, Morgan Stanley expects the RMB to appreciate relatively moderately against the US dollar by the end of 2026, possibly reaching 7.05.

This morning, the MSCI China Index rose, increasing to 20% from its April low. Judging from the current situation, the bullish trend in the Chinese stock market is indeed strengthening. Morgan Stanley said investors are particularly concerned about new technologies and new business models in the Chinese market, particularly new consumer topics and topics related to artificial intelligence/technology. Investors also gave more recognition to the improvement of China's capabilities in global technology competition, such as breakthroughs in the field of artificial intelligence and progress in the fields of electric vehicles, batteries, humanoid robots, etc., and began to reconsider the strategy of simultaneously investing in the Chinese and US markets in a multipolar world. In terms of exchange rates, Morgan Stanley has changed the view of the RMB against the US dollar from depreciation to appreciation. This shift reflects its expectation that the dollar will weaken, and it is expected that the dollar index may fall to 89 by the end of 2026. Meanwhile, EUR/USD is also expected to appreciate by more than 10%. However, Morgan Stanley expects the RMB to appreciate relatively moderately against the US dollar by the end of 2026, possibly reaching 7.05.