Grailpoint October 15th | Morgan Stanley's report pointed out that by comparing recent mainland policies with historical policy actions and financial system data, to examine their impact on credit and risk cycles. The bank believes that improved policy communication will reduce significant downside risks and risk premiums. It is believed that the recent policy shift is not a 180-degree change, but will help boost confidence in the remaining period of the cycle. The new policy stance may help investors focus on the post-cycle prospects, but the property and industrial cycles are not expected to bottom out until the second half of next year. The bank believes that insurance stocks are best positioned to benefit in an environment of reduced economic downturn risks and long-term rational but more cyclical growth, with current valuations still attractive, with AIA and Ping An Insurance being the top choices. High dividend-paying banks are also benefiting from reduced risk concerns, with a preference for Postal Savings Bank of China and Bank of Ningbo.