Fears of a China Hard Landing Resurface

The biggest threat of last year – a hard landing in China – seems to have resurfaced with several banks highlighting the dangers that could still derail the world’s second largest economy.

Skyrocketing property prices, mounting credit and a slowdown in gross domestic product growth to levels not seen in over a decade have China bears warning of an impending crisis.

According to the latest monthly survey conducted by Bank of America Merrill Lynch the number of fund managers overweight on emerging equities reduced from 43 percent to 34 percent in March largely due to the return of hard landing fears in China.

The number of investors worried about a China hard landing ticked up from 10 percent to 18 percent this month according to the report.


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