China stock sell-off could erase another 15% in value, Morgan Stanley says

Weakness in Chinese stocks may persist, with a quick rebound unlikely after a key benchmark slid into bear territory last week, according to global investment banks including Morgan Stanley. China’s onshore and offshore stocks could decline by an additional 10 to 15 per cent before bottoming out, based on valuations during several troughs since 2008, according to Morgan Stanley. Meanwhile, UBS Group said sentiment would not recover soon even though the further downside room was limited. Chinese...