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Morgan Stanley Says Buy the Dip After Hong Kong Stocks Slumped

  • Bank says China’s economy is recovering, relations stabilize
  • Hang Seng fell 2.7% on Monday, but still up 12% this year

Morgan Stanley sees Monday’s dive in the Hong Kong stock market as an “opportunity” and recommends investors buy the dip, as China’s economy recovers, relations between Beijing and Washington stabilize, and correlation with the US market remains low.

“We continue to stay Overweight on Chinese equities and would take the current opportunity to recommend buy the dip, ” wrote Laura Wang, the Wall Street bank’s chief China equity strategist in a Jan. 30 note.