The icons of WeChat, Baidu, AliExpress, Tencent QQ, Taobao of China are depicted with the icons of Facebook and Messenger.
S3studio | Getty Images Entertainment | Getty Images
(This story is for CNBC Pro subscribers only.)
SINGAPORE – Morgan Stanley downgraded Chinese stocks and lowered its rating by an important index that tracks Chinese stocks listed abroad and outside the continent in Hong Kong.
The investment bank reduced its rating for MSCI China to the same weight, or the same weight as the benchmark.
The MSCI China index includes large and mid-cap stocks that are listed on the domestic market, as well as stocks listed in Hong Kong and stocks listed abroad, such as those in the USA
The investment bank, however, said it continues to prefer A shares, or Chinese shares listed on the continent’s stock exchanges, compared to offshore shares, he wrote in a report released on Monday.