"For a market dependent on synchronized global growth, investors may be betting too much that China will not rock the boat next year."
"Curiously, the market has been ignoring the string of negative Chinese data surprises in recent weeks"
"We are concerned that China could be vulnerable to US tax reform getting done...a resulting increase in U.S. rates and the U.S. dollar would likely cause capital flight from China to accelerate and weaken the Chinese yuan. If that happens, China's central bank would be likely "to tighten liquidity, which in turn would raise further concerns about the growth outlook"
Too late
Fears of negative spillover from a rapid slowdown in China's economy hit global markets in August 2015 after a surprise yuan devaluation. Further weakness in the currency in the first few weeks of 2016 contributed to the worst start to a year on record for both the Dow and S&P 500.
Since then, Chinese authorities have proven they are still able to control their economy. But stability has come at the cost of ever-increasing debt levels.
[Insert happy ending non sequitur here]
"...shares of Chinese tech giants Alibaba, Tencent and Baidu have soared so much this year they've earned the nickname "BAT."
