Morgan Stanley: Net inflow of foreign capital into China's stock market in February, outflow of active funds slowing.

Morgan Stanley's research report stated that after three months of capital outflows, the Chinese stock market saw a net inflow of foreign funds in February, totaling $3.8 billion. This was mainly driven by passive fund inflows of $5 billion, which was more moderate compared to the surge in October last year. During the period, active fund outflows from foreign investors amounted to $1.2 billion, showing a slower pace compared to the $1.7 billion outflow in January. Morgan Stanley believes that compared to the previous round of capital flows in late September last year, this round of passive fund inflows is more concentrated in industries related to artificial intelligence and technology, so the scale is not significant. The most popular stocks among foreign funds so far this year include MEITUAN-W(03690), China Construction Bank Corporation(00939), TRIP.COM-S(09961), and PICC P&C(02328), while the most sold stocks are Kweichow Moutai(600519.SH) and Midea Group Co., Ltd(000333.SZ,00300).