The Zhitong Finance App learned that Morgan Stanley strategists drastically lowered the 12-month target of the Hang Seng Index by about 10% to 27,200 points on June 20, which means that the Hang Seng Index will fall by about 18% from the January high, close to the adjustment range that usually indicates that the market has entered a bear market.

Strategists such as Jonathan Garner wrote in a report on Wednesday, “We think there is a risk that the Hang Seng Index will fall further sharply in the short term,” advising investors to pay special attention to reducing exposure to Hong Kong stocks at this critical time.

The Hang Seng Index closed at 29696 points on Wednesday. Morgan Stanley believes that rising interest rates, depreciation of the renminbi, and worsening trade relations between the US and China will all threaten Asian economic growth and corporate profits. The bank's strategists also lowered the target positions of the other six indices.