China Stock Alarm Louder as Morgan Stanley Ends Bullish Bet
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Add Morgan Stanley and BNP Paribas Investment Partners to the list of forecasters sounding an alarm about China’s stock market.
Jonathan Garner, the chief Asia and emerging market strategist at Morgan Stanley, downgraded Chinese stocks for the first time in more than seven years on Thursday, citing the weakest corporate profits since 2009. BNP Paribas has sold some Chinese shares listed in Hong Kong on concern about ballooning mainland margin debt and the growing mismatch between equity prices and a deteriorating economy.