[ET Net News Agency, 9 May 2018] Morgan Stanley lowered its target price for China
Merchants Securities (CMSC)(06099) to HK$12.63 from HK$15.22, and retained its
"equal-weight" rating.
The research house is less optimistic on brokers' 2018 outlook, considering a relatively
challenging market environment with new rules from regulators. The tight regulatory
conditions also pressure brokers to continue reforming with more standardized asset
management and investment banking businesses.
Morgan noted CMSC's solid position serving institutional clients with leading prime
brokerage platform. High CSRC rating, which reflects good risk management and internal
controls, should continue to benefit CMSC in 2017. Its asset management supported by
multiple platforms and group synergy. (KL)