Morgan Stanley estimates 10-15% further decline for Chinese stocks, sees stabilization within 1-2 months after state buying

Morgan Stanley estimates the CSI 300 could fall another 10% to 15%, bringing valuations to about 8 times forward earnings, while mainland shares may de-rate to 10-11 times. The bank says markets typically bottom one to two months after high-profile state fund purchases, based on historical patterns with Central Huijin holding $188 billion in dry powder.