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Bank of America Merrill Lynch: The Shanghai Composite Will Plummet by Nearly 30% in 2016

This time is not different.
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Understanding the Plunge in China’s Markets

The early January blues for Chinese stocks will persist through 2016, according to Bank of America Merrill Lynch, which expects the Shanghai Composite index to end the year down roughly 27 percent, at about 2,600.

David Cui, head of China equity strategy, is known to be bearish on the world's second-largest economy—which is to say that he's less sanguine than most of his peers about the consequences of unwinding leverage that has mounted in a short period of time.