04-23-2009, 10:25 AM
<b>China Stocks Are âOvervalued,â Says Morgan Stanley</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->âThe market has rallied ahead of fundamentals,â said Morgan Stanleyâs Hong Kong-based strategist Jerry Lou in a note today. Lou cut his view on Chinaâs stocks to âcautiousâ from âneutral.â His target of 36.3 points for the MSCI China Index is 18 percent below the gaugeâs close yesterday.
Loan growth is set to fall in coming quarters, causing deterioration in macroeconomic indicators such as the purchasing managerâs index and corporate earnings, Lou said. <b>MSCI China companies may see profits tumble 15.4 percent this year, while those on the CSI 300 Index, measuring yuan-denominated stocks in Shanghai and Shenzhen, may drop 8.8 percent.</b>
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<b>China Cosco Seeks to Delay, Cancel Ships After Loss </b>
Loan growth is set to fall in coming quarters, causing deterioration in macroeconomic indicators such as the purchasing managerâs index and corporate earnings, Lou said. <b>MSCI China companies may see profits tumble 15.4 percent this year, while those on the CSI 300 Index, measuring yuan-denominated stocks in Shanghai and Shenzhen, may drop 8.8 percent.</b>
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<b>China Cosco Seeks to Delay, Cancel Ships After Loss </b>