Morgan Stanley downgrades China stocks as regulations kick in — but there's one bright spark

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New for subscribers: Morgan Stanley downgrades China stocks as regulations kick in — but there's one bright spark. Check out CNBCPro today.

Morgan Stanley reduced its rating for MSCI China, an index by index giant MSCI which includes Hong Kong-listed stocks as well as those listed in the U.S, to equal weight.

The icons of China's WeChat, Baidu, AliExpress, Tencent QQ, Taobao are pictured with the icons of Facebook and Messenger.SINGAPORE — Morgan Stanley has downgraded Chinese stocks, and reduced its rating on a major index which tracks Chinese shares listed overseas and off the mainland in Hong Kong.

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