May 27, 2010 (Chinavestor) Morgan Stanley (NYSE:MS) says Chinese stocks look ripe for buying as Beijing is not likely to take stronger measures to cool economic growth as the European sovereign debt crisis has pressured global equity markets.
Morgan Stanley's (NYSE:MS) Jerry Lou told Bloomberg news that the market has priced in a hard landing for property values. The whole market is a buy” as concerns are over- stated, he said in the Bloomberg interview.
Chinese stocks officially entered bear market territory earlier this year and the Shanghai Composite Index is the third-worst performing bourse in the world this year, trailing only Greece and Cyprus.
Chinese stocks have been hampered on concerns the European debt crisis will slow the global economic recovery. Europe is a prime destination for Chinese exports and a 20% drop in exports to Europe could shave a point off China's GDP, according to Credit Suisse report.