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An evening view of the financial Central district and Victoria Harbour in Hong Kong, China, May 9, 2023. REUTERS/Tyrone Siu
Investors believe Chinese real estate is the most likely source of a global systemic credit event and are at their most pessimistic on China growth prospects in over a year, Bank of America's September fund manager survey on Tuesday showed.
A third of respondents in the survey cited Chinese real estate as the biggest credit event risk, overtaking U.S. and EU commercial real estate at 32%.
China growth expectations slumped, with the net percentage of respondents expecting a stronger economy in the next 12 months falling to 0% from 78% in the February poll. This was lower than a year ago when the when the world's second largest economy was still in the midst of strict anti-covid lockdowns. (Reporting by Alun John, editing by Dhara Ranasinghe)