According to news in the morning of April 13, Beijing time, according to a document released by the Securities and Exchange Commission (SEC), Morgan Stanley (Morgan Stanley)Has reduced its stake in Baidu, Inc. (NASDAQ: BIDU) to 0.9%.

Previously, it can be seen in the 13G document submitted by Baidu, Inc. on March 29th that Morgan Stanley holds a 5.2 per cent stake in the company.

However, analysts believe that this sell-off may not have much to do with Baidu, Inc. 's fundamentals.It is mainly affected by the "century explosion".

Morgan Stanley sold billions of shares held by Archegos Capital, including Baidu, Inc. and Tencent Music, before Archegos Capital was forced to sell more than $20 billion of shares, according to media reports.

However, Morgan Stanley himself does not seem to be optimistic about the prospects of US stocks.

The bank's latest warning is thatThe collapse of small-cap and cyclical stocks in US stocks is an early sign that the economic reopening and recovery is not as smooth as expected.

Since peaking on march 12th, the Russell 2000, which represents small-cap stocks, has underperformed the s & p by 8 per cent. At the same time, some cyclical stocks began to underperform, while defensive stocks fared slightly better.

Michael Wilson, chief US equity strategist at Morgan Stanley, said the recent decline in US small-cap stocks is a warning sign that it will be more difficult for the US economy to reopen.The market underestimates the implementation risks associated with the economic recovery and potential surprises that have not yet been reflected in market pricing.

In addition, the IPO and SPAC fell at the same time, 20% worse than the s & p 500. Wesson thinks that meansThe excess liquidity provided by the Fed is finally overwhelmed by supply..

One risk mentioned by Wesson is that the blockade of the epidemic has undermined supplies in some cases. At present, there are signs of supply shortage in terms of materials, logistical support and labor.

Wesson has downgraded small-cap stocks and advised investors to upgrade their portfolios to add higher-quality stocks.