The Chinese regime still has considerable power over the markets. After a 7 percent crash of the Shanghai Composite on Jan. 4, it managed to reverse another 3 percent drop on Jan. 5.
So in the very short term, all is well. In the long term and even in 2016, Bank of America sees big problems ahead for the Chinese economy.
According to its analysts the regime has to fight multiple battles at once and will ultimately lose to market forces.
“We judge that China’s debt situation has probably passed the point of no return and it will be difficult to grow out of the problem,” states a report by Bank of America’s chief strategist David Cui.
Google Finance
