Morgan Stanley has flagged 29 Chinese stocks that are most likely to benefit from the completion of a phase one deal between the U.S. and China.

Nearly half of them are from the information technology sector, which has been hit by the trade war as those companies have been on tariff lists. Eight are from the consumer sector.

"These two sectors saw the biggest scale of valuation re-rating based on their previous reaction to de-escalation events," Morgan Stanley said in a report last week.

All 29 have sizable exposure to U.S. revenues - more than 25%, the investment bank said.

"We believe IT/Internet-related and Transportation stocks will benefit the most from any de-escalation of trade tensions - IT and Internet due to their exposure to tariff impacts and technology bans, while Transportation stocks, especially Airlines, should benefit from an improved global trade outlook and strengthened CNY/USD," the bank wrote.