Morgan Stanley is more optimistic about Chinese bank stocks, stating that global investors are too pessimistic about the impact of China's real estate market downturn and economic weakness on banks' profits. Richard Xu, the bank's chief financial analyst in China, said that the measures taken by policymakers in recent months have provided support for the real estate market and will ease banks' risk exposure, thus prevent the worst-case scenario. The decline in risks for the real estate industry and local government financing platforms indicates that the cost of supporting China's ongoing industrial upgrading is also controllable, which is beneficial for growth.