Friday, October 16, 2009

China Stocks are Top ‘Overweight’ at Morgan Stanley

(Bloomberg) -- China’s stocks make up the largest “overweight” within the emerging-market model at Morgan Stanley, which said investors should reduce their holdings in India.China stocks are more attractively valued than those in India, while the South Asian nation may tighten monetary policy first, Morgan Stanley strategists led by Jonathan Garner wrote in a report today. They also upgraded stocks in Malaysia and Egypt to “overweight” from “equal-weight” and cut Peru and Chile to “underweight” from “equal-weight.”

The MSCI China Index is valued at 17 times estimated earnings, less than the MSCI India Index’s multiple of 21 times, according to data tracked by Bloomberg. The gauges have rallied 56 percent and 88 percent respectively this year, compared with a 71 percent gain in the MSCI Emerging Markets Index.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a8QGElhC5nPw

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