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In the wake of yesterday's sell off Morgan Stanley note that "broad-based selling is under way as investor concerns over regulatory action deepen. We continue our preference for the A-share market. These companies are much more shielded from regulatory uncertainty (no ADRs, no Internet) and offer more single stock opportunities that are aligned with the national strategic growth blueprint (tech localization, cybersecurity, green economy). Note that our June 2022 base case CSI 300 index target suggests 3% absolute upside, which is not a lot. We expect spillover impact from sentiment on the A-share market too, as shown by the July 26 market move. That said, we do believe A-shares will continue to outperform the offshore markets in view of our argument about better positioning (sector exposure, alignment with top-down policy initiative, single stock ideas)."