Morgan Stanley cut its rating on Chinese stocks to equal weight Wednesday, saying investors should capitalise on a rally spurred by government stimulus pledges to take profits. Chinese assets have gotten a boost in recent days amid a slew of promises from Beijing to spur growth and revitalise the nation’s flagging private sector. But easing measures are likely to come piecemeal, analysts at the bank wrote in a report, which may not be enough for shares to sustain gains. Also read: Much of China is pure bluster“We take the July politburo meeting as sending more dovish signals given the clearer stance on stabilising economic growth and supporting the private sector,” analysts including Laura Wang and Fran Chen wrote. Morgan Stanley also downgraded Taiwan to equal weight, noting that valuations are stretched amid a surge in tech stocks.

Source: The Hindu August 03, 2023 14:56 UTC