The Wall Street Journal reports that the Chinese stock market has entered a bear market, with Morgan Stanley warning of a potential further decline of 10% to 15% before hitting bottom, noting that state-backed fund purchases may only provide short-term support.
On October 26, Bloomberg reported on a Morgan Stanley study saying that the Chinese stock market may not have bottomed out yet, and that offshore Chinese stocks could fall another 10%–15% before approaching historically low valuations, with weak economic consumption, pressure on e-commerce, and fears of tax-triggered selling of trusts intensifying the adjustment.
Morgan Stanley expects China's public debt-to-GDP ratio to reach 122% by the end of 2026, up 48 percentage points from before the pandemic.
CICC held its quarterly board meeting at the Sukhothai Hotel in Bangkok, with Morgan Stanley eager to sell its stake, while the Chinese management team led by Zhu Yunlai demonstrated tough bargaining power.