{"id":107995,"date":"2009-12-28T10:12:10","date_gmt":"2009-12-28T15:12:10","guid":{"rendered":"http:\/\/www.businessinsider.com\/merrill-the-real-china-bubble-starts-in-2010-2009-12"},"modified":"2009-12-28T10:12:10","modified_gmt":"2009-12-28T15:12:10","slug":"merrill-if-inflation-pops-chinese-asset-prices-will-explode","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/107995","title":{"rendered":"Merrill: If Inflation Pops, Chinese Asset Prices Will Explode"},"content":{"rendered":"

\"bubble<\/p>\n

Think Chinese stock and property markets are a bubble? You haven’t seen nothing yet according to Bank of America Merrill Lynch.<\/p>\n

Wait until real interest rates go negative due to rising inflation butting against ultra-stimulative interest rates.<\/p>\n

Business Week:<\/a> “Next year could be the year we see a full-blown asset bubble,” David Cui, the China strategist at Bank of America Corp.’s Merrill Lynch unit, said today in a phone interview from Sydney. “We’re likely to see massive savings migration as we head into real negative interest-rate territory,” where people “save less, spend more and invest more,” he said.<\/p>\n

…<\/p>\n

Interest on bank savings accounts may fall below the rate of inflation next year. Consumer prices climbed 0.6 percent in November from a year earlier, snapping a nine-month run of deflation, and prices may rise 3 percent in the first quarter, driving more savings into equities, the China Securities Journal said in a front-page editorial today. The 12-month savings deposit rate is 2.25 percent, central bank data showed.<\/p>\n

Read more here.<\/a><\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n