Morgan Stanley Soars 3.48% on China Trade Optimism
On May 12, 2025, Morgan Stanley's stock rose by 3.48% in pre-market trading, reflecting a positive market sentiment towards the company.
Morgan Stanley reported that hedge funds, particularly those based in the United States, increased their bullish bets on Chinese stocks last week. This move was driven by optimism surrounding the progress of U.S.-China trade negotiations. The MSCI China Index and the Shanghai-Hong Kong 300 Index both saw gains of 2.4% and 1.9% respectively, ahead of the Geneva trade talks.
The bank noted that hedge funds reduced their positions in most other Asian regions, including Thailand, Hong Kong, India, and Australia. This shift in investment strategy highlights the growing confidence in China's market potential amidst improving trade relations.
Morgan Stanley also pointed out that hedge funds' exposure to China remains below peak levels, indicating there is still room for further investment. This cautious optimism is echoed by other market participants, who see potential in China's stock market despite ongoing geopolitical uncertainties.
