0745 GMT - China equities could struggle to find a fresh catalyst in the near term unless policymakers deliver stronger support measures or AI-driven gains translate into broader earnings growth, according to a Morgan Stanley report. The bank cuts its June 2027 targets for major Chinese indexes, citing weakening economic data, tighter liquidity conditions and reduced room for additional investor inflows. It lowers its earnings growth forecasts for MSCI China to 6% in 2026 and 8% in 2027. Morgan Stanley says China's economic recovery has been delayed by soft domestic demand, a prolonged property downturn and limited policy stimulus. It adds that tighter oversight of cross-border capital flows and a more hawkish Federal Reserve outlook could further weigh on market sentiment.