Bank of America Merrill Lynch: H share decline is far from over, the Hang Seng China Enterprises index could still fall by 20% – Economic Link ET Net

"Economic News Agency 6th News" according to "Peng Bo said that Cui Wei, head of the stock strategy at the Bank of America Merrill Lynch China
who has long warned against the risks of China, Although some badet management companies are expecting the bottom, he expects the Hang Seng China Enterprises index to drop another 20%
.
Cui Wei pointed out in the research report dated July 5 that the current cycle
is still very mild compared to the three major rounds of corrections that have occurred over the last decade, as of Thursday (5). PE ratio at 12 months of the Hang Seng China Enterprises index was 7.4 times,
and reached 5.9 times the stock market crash 2015 with a market value of US $ 5 trillion. Low.
Cui Wei said that because his forecast was not taken into account in the downward adjustment of profit expectations, the fall could be even stronger, considering the risk "seismic" of a trade war with the United States. With the net tightening of credit and real estate policies and a further slowdown
the fall of the Hang Seng China Enterprises index could be as important as investor expectations. (cl)