Chinese stock sentiment remains flat amid geopolitical concerns

Published 20/06/2025, 10:34
© Reuters.

Investing.com - Chinese stock market sentiment has remained flat amid lukewarm macroeconomic conditions and geopolitical instability, according to Morgan Stanley (NYSE:MS)’s latest analysis.

The weighted Market Sentiment Analysis Index (MSASI) held steady at 66% while the simple MSASI remained at 53% compared to the June 11 cutoff date, indicating investor sentiment has not shifted significantly despite market fluctuations.

Average daily turnover showed mixed results across Chinese markets, with ChiNext, Equity Futures, and Northbound trading volumes increasing by 3%, 13%, and 9% respectively compared to the June 5-11 period, while A-shares turnover declined by 1%.

The 30-day Relative Strength Index (RSI) dropped 2 percentage points compared to June 11, and consensus earnings estimate revision breadth remained negative with a slight decline from the previous week.

Southbound capital flows continued their positive trend with net inflows of US$2.4 billion between June 12-18, bringing year-to-date inflows to US$88.5 billion and month-to-date inflows to US$5.5 billion.

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