Morgan Stanley's chairman is optimistic about China: asset management institutions are expecting to increase exposure, and market allocation is shifting from "passive" to "active".

CEO of Morgan Stanley, Ted Pick, stated that with the return of market confidence, China remains a major attraction for global asset management companies. Investors generally believe that as the second-largest market in terms of liquidity, the massive size of the Chinese market cannot be ignored. In an interview on Tuesday, the CEO pointed out that during market downturns, asset management companies were under-allocated to Chinese assets, with exposure leaning more towards passive investments and beta-driven strategies. Now, as market momentum picks up, China is becoming a destination for capital inflows. "When the market is vibrant, when leading companies demonstrate clear competitive advantages, investors will pursue alpha returns (excess returns)," Pick said. "They want to allocate specifically to certain companies - making the environment for new stock offerings crucial at this time." Pick mentioned that China has provided a blueprint for India to create leading local companies and drive economic transformation. He believes that India is learning how to move beyond being a "+1" (an alternative in the supply chain) and is beginning to nurture its own international leading companies. Pick stated that for Morgan Stanley, China and India are the two markets with the most development potential. Both markets have scale advantages and ambitions for growth, with a growing number of companies ready to compete on the international stage. Pick said that these two markets together account for a large proportion of the global population, and both have the potential for development. "I am optimistic about India and China. There is no need to choose one over the other."