While investors worldwide are scrambling to determine what is going on with the Chinese stock market, Morgan Stanley analyst Robert Lin released a new report this week outlining several buying opportunities that the Chinese market chaos has created. According to Lin, certain Chinese Internet stocks with strong, long-term growth potential are now trading at attractive valuations.

Catalysts

Lin believes large-cap Chinese e-commerce companies have the most long-term growth potential due to their dominant market positioning, large amounts of cash and relatively stable core margins.

“We see two positive catalysts: 1) MSCI China’s inclusion of major Chinese ADRs, which favors large-cap companies like Alibaba, JD and Vipshop; and 2) potential dual-listing of A-shares, given approval for 100 percent foreign ownership in e-commerce companies in China,” Lin explained.

Top Pick: Alibaba Group Holding Ltd BABA 0.99%

Alibaba is…

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