Morgan Stanley pointed out in its latest China equity strategy report that the rebound logic for Hong Kong stocks in the third quarter is further strengthening, driven by improving corporate earnings expectations, the opening up of room for overseas capital inflows, and a more favorable global market environment. The bank recommends that investors re-allocate to Hong Kong stocks now, with a particular preference for the internet sector. In addition, Morgan Stanley's China economics team expects the USD/RMB exchange rate to appreciate to 6.72 and 6.75 by the end of Q3 2026 and year-end, respectively. Exchange rate stability is expected to boost overseas investors' willingness to allocate to Chinese assets.