Morgan Stanley has hailed China’s assets as “attractive” as investors worry and consider whether Evergrande’s debt could fail and whether there are any illnesses.

He believed the US factory was violating the building’s law and supporting Chinese businessmen.

“We believe the risks and risks associated with asset collapse were significantly affected by these assets,” banking analyst Elly Chen said in a letter in October. Why. “

 He wrote that measures to “systematically change” and “excessive control” debt control could last for the next six to twelve months.

China’s debt has risen sharply after years of deep debt, prompting the authorities to repeal three red-line laws last year. The Charter limits liability for cash flows, assets, and liabilities.

Things started to work when the law came into force for manufacturers.

Evergrande, the world’s largest debtor, warned twice last month that it could collapse. It lost interest on five loans repaid in September and October.

Some Chinese traders have also undermined stability and uncertainty.

Policy ‘inflection point’ approaching

But Morgan Stanley said: “Insurance is approaching.”

Real estate has declined this year, and Chinese cities are taking steps to attract it and buy houses and buildings.

“This choice is the most important product document,” Chen said.

According to Morgan Stanley, 6.5% of the country’s total stock supports its registry, while home-related services account for 7.3%. The bank said a 10% reduction in housing could reduce GDP by 1%.

“Cleaning other organs could be the last way to destabilize the economy by reducing human consumption,” Chen said, adding that as a result, policymakers could provide cleansing. The “significance” part of stabilizing assets and maintaining the economy.

In addition, according to Morgan Stanley, several designers will have the meaning of “three red lines” by the end of 2022. The three red ropes set a credit limit for the financial, material, and financial situation.

In the first quarter of 2021, 16 out of 26 merchants entered the bank and confirmed three red flags, while nine corresponded to three bases. The bank said that only one did not meet all three conditions of the plan.

Morgan Stanley takes over

Morgan Stanley has predicted that the Chinese real estate segment will be “attractive” in terms of quality research and may support real estate.

This says that most companies have a simple perspective, strong data analysis, and an equal “page”.

The best banking opportunities are China Poly Group, CR Country, Longfor, and Sunac.

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