Morgan Stanley has named a slew of Chinese stocks it says are set to outperform, despite current market conditions. Baidu has the highest R & D mix compared to peers in tech innovation over the years," said Morgan Stanley. NetEase Morgan Stanley pointed to NetEase 's strong game pipeline, and expects margins to improve as a result of non-game segments cutting losses, among other factors. Star Power Semiconductor Morgan Stanley also named one semiconductor stock: China-listed Star Power Semiconductor. It gave Star Power a price target of 420 Chinese yuan ($57.8), or potential upside of around 80%.

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Persons: Morgan Stanley, Alibaba Morgan Stanley, NetEase Morgan Stanley, Star Power Semiconductor Morgan Stanley, CNBC's Michael Bloom Organizations: Alpha, Baidu, Tencent, Entertainment, Music Entertainment, Hong, Star Power Semiconductor, Power Semiconductor, Power, China 5G, Semiconductor Locations: China, U.S, Hong Kong