Morgan Stanley Says Take Profits on China, Downgrades Shares
- Analysts at bank cut rating on Chinese stocks to equal weight
- Taiwan shares also lowered on valuations amid tech surge
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Morgan Stanley cut its rating on Chinese stocks to equal weight Wednesday, saying investors should capitalize 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 revitalize 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.