Morgan Stanley: Hedge funds are bullish, expected to have the largest investment scale in the Chinese stock market in August for the past six months.

A report by Morgan Stanley shows that global hedge funds are increasing their bets on the Chinese stock market, with August expected to see the largest monthly buying spree since February. Morgan Stanley stated that since early August, hedge funds have been "significantly biased towards A-shares," in contrast to a significant inflow of funds into Hong Kong-listed technology stocks after the breakthrough of DeepSeek AI in February. According to Morgan Stanley's report on Tuesday, last week saw the most capital inflows into the consumer goods and industrial sectors. Morgan Stanley estimates that as of August 22nd, long-short funds investing in Chinese stocks have seen an average increase of 3% this month and a year-to-date increase of 13.5%.