Financial iron curtain comes to the United States and China to deduct the US -China fi

Source: Economic Daily

With the intensity of trade tensions in the United States and China, analysts of the Bank of America (BOFA) have already deduced the impact that the financial market may suffer.

The team led by the Bank of America China Strategy Director David CUI said to customers on the 4th: What will happen if China and the United States are decoupled in finance?This report said: This is not our basic situation prediction, but an emerging risk worth monitoring.

Bank of America pointed out that the possible situation of the two major economies in the world includes:

Under the strengthening of U.S. politicians, China's US deposit certificate (ADR) is on the market.

American fund managers are facing pressure to withdraw from the Chinese stock market.Biotech, construction, oil and natural gas, telecommunications, media and technology and other companies may face higher shareholders' unfavorable behavioral risks.

The first public issuance of stocks (IPOs) of Chinese companies may shift to China and Hong Kong to hurt new economic companies because the capital market in the United States is deeper than before.In the short term, the surge in large IPOs may bring liquidity pressure to other (China) markets.

China may sell some US investment, including US public debt and stocks.

The United States and China will engage in a currency war because China promotes the global use of RMB to weaken the strategic advantage of the global financial system to weaken the US dollar character in the global financial system.Bank of China pointed out that the dominant position of the US dollar has brought additional assistance to the US sanctions on Russia, Iran and Huawei.

Bank of America's strategist said: In recent days, there are some signs that the US -China conflict may spread to the financial market.In the long run, the United States and China may be financially decoupled.