China Equity Strategy: Asia Pacific: Focus List Changes – China/HK and China A-share Thematic

Morgan Stanley adds WH Group (0288.HK) to its China/HK Focus List and Cambricon (688256.SS) to its China A-share Thematic Focus List, and removes GigaDevice (603986.SS) from both lists. WH Group is rated Overweight by China/HK consumer analyst Lillian Lou: its China business benefits from low hog prices and product mix upgrades in packaged meats; US packaged meat margins are expected to improve in 2026E while reduced hog production capacity supports the upstream business; over the longer term a greater share of downstream capacity and increased trade opportunities across markets could reduce business volatility; and valuation looks attractive on 2026E P/E and EV/EBITDA relative to expected earnings growth over 2025-27E. Cambricon is rated Overweight by semiconductor analyst Charlie Chan as one of the clearest beneficiaries of China's AI chip localization, with domestic CSPs increasingly adopting local accelerators for both training and inference. Shipment visibility into 2027 is strong