China will steer clear of a hard landing: economists

Hong Kong

WHATEVER does cause the next global recession, it likely won't be China.

That's according to Bank of America Merrill Lynch, who gathered its top experts to mull the "34 questions about China that you were afraid to ask." They concluded the world's second-largest economy will steer clear of a hard landing and the government will contain the risks arising from its financial market turbulence. While its slowdown will weigh on investor confidence, it won't cause major negative spillovers to the global economy based on an analysis of trade, portfolio and commodity channels. "We don't view the slowing in Chinese growth as having sizable spillovers into developed markets generally, but certain economies will be harder hit than others," Michael Hanson, senior global and US economist wrote in a note.