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<Research>M Stanley: Valuation, Liquidity Downside Risks Controllable If CN Concept Stocks Delisted
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With the escalation of US-China tariffs, the delisting risk of ADR has resurfaced, Morgan Stanley released a research report saying.

At present, ADRs account for 25% of the weight of the MSCI China Index, with more than 80% of ADRs being dual-listed in Hong Kong, the broker added. It is believed that the occurrence of delisting will ensure smooth trading, and the impact on China's stock market will be negative in the short term, but controllable in the long term.

Related NewsUBS: Risk of CN ADR Delisting in US More Manageable Than Past; Mkt Eyes US-CN Uncertainty
Morgan Stanley believed that the downside risks to valuations and liquidity are gradually becoming more manageable on a 6-12 month basis, as the market and companies are finally assessed based on fundamentals.
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