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Morgan Stanley flags limited upside for China equities near term

A Morgan Stanley report says China equities could struggle to find a fresh catalyst unless policymakers deliver stronger support and AI-driven gains broaden into earnings growth. The bank cuts June 2027 targets for major Chinese indexes.

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China equities could struggle to find a fresh catalyst in the near term unless policymakers deliver stronger support measures or AI-driven gains translate into broader earnings growth, according to a Morgan Stanley report.

The bank cuts its June 2027 targets for major Chinese indexes, citing weaken…