--- title: "Morgan Stanley: Cautious attitude towards the mainland software industry, with Beisen Holding as the top choice" type: "News" locale: "en" url: "https://longbridge.com/en/news/257665971.md" description: "Morgan Stanley released a research report stating that, regarding the fundamentals of the mainland software industry, the bank remains cautious due to expectations of a slowdown in mainland GDP growth and ongoing deflationary pressures. Corporate confidence in IT investment remains low, and it is believed that recovery will only occur 1 to 2 years after deflation ends. Before a substantial turnaround in demand, any new technology trends driven by the supply side can only lead to a redistribution of existing budgets in the market. In terms of funding, the bank believes that the sector will follow overall market liquidity in a low-interest-rate environment and will have higher elasticity (Beta), as the allocation weight of active funds is extremely low. Thematic investments such as AI applications, technology localization, and stablecoins may have a significant impact on stock prices, but currently, the bank has not identified any themes that can truly reverse the industry's fundamentals. In terms of shares, the bank strongly recommends H shares over A shares; the industry preference is Beisen Holding, with a target price of HKD 10.3 and a rating of \"Overweight,\" expecting revenue to accelerate growth. The next preferences are KINGDEE INT'L, CHINASOFT INT'L, and KINGSOFT, with target prices of HKD 14.2, HKD 6.6 (originally HKD 5.4), and HKD 38, all rated \"In Line with the Market.\"" datetime: "2025-09-17T07:06:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/257665971.md) - [en](https://longbridge.com/en/news/257665971.md) - [zh-HK](https://longbridge.com/zh-HK/news/257665971.md) generator: "portal-rs" --- # Morgan Stanley: Cautious attitude towards the mainland software industry, with Beisen Holding as the top choice According to the Zhitong Finance APP, Morgan Stanley released a research report stating that the bank remains cautious about the fundamentals of the mainland software industry, as it expects GDP growth in the mainland to slow down, and deflationary pressures still exist. Corporate confidence in IT investment remains low, and it believes that recovery will only occur 1 to 2 years after deflation ends. Before a substantial turnaround in demand occurs, any new technology trends driven by the supply side can only lead to a redistribution of existing budgets in the market. In terms of funding, the bank believes that the sector will follow overall market liquidity in a low-interest-rate environment and has higher elasticity (Beta), as the allocation weight of active funds is extremely low. Thematic investments such as AI applications, technology localization, and stablecoins may have a significant impact on stock prices, but the bank has not yet identified any themes that can truly reverse the industry's fundamentals. In terms of shares, the bank strongly recommends H-shares over A-shares; the industry preference is for BEISEN HOLDING (09669), with a target price of HKD 10.3 and a rating of "Overweight," expecting revenue to accelerate growth. The next preferences are KINGDEE INT'L (00268), CHINASOFT INT'L (00354), and KINGSOFT (03888), with target prices of HKD 14.2, HKD 6.6 (originally HKD 5.4), and HKD 38, all rated "In Line with the Market." ### Related Stocks - [00268.HK](https://longbridge.com/en/quote/00268.HK.md) - [00354.HK](https://longbridge.com/en/quote/00354.HK.md) - [09669.HK](https://longbridge.com/en/quote/09669.HK.md) - [03888.HK](https://longbridge.com/en/quote/03888.HK.md) ## Related News & Research - [Beisen files HKEX next-day return disclosing share repurchase at HKD 2.98-HKD 3.03](https://longbridge.com/en/news/298708680.md) - [Beisen Unveils 15+ AI HR Experts on Mavens Platform AI Monetization Continues to Accelerate](https://longbridge.com/en/news/298179427.md) - [ChinaSoft wins RMB 35.5 million OpenHarmony AI innovation center project in Foshan](https://longbridge.com/en/news/298321385.md) - [Moonshot AI Kicks off Kimi Enterprise Partner Program; First Batch of Partners Includes KINGSOFT CLOUD and CHINASOFT INT'L](https://longbridge.com/en/news/298556823.md) - [OPEC further lowers 2026 global oil demand growth forecast](https://longbridge.com/en/news/298589792.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**