Stress Testing for a Chinese Hard Landing

Jun 2, 2012

With Eurozone weakness and slowing exports, China may be in for a hard landing in 2012. In this report, we examine the relationship between China and its trading partners through the lens of RiskManager and offer a hypothetical stress test.  We translate this macroeconomic event into market risks and test how these risks might impact global assets such as equities, bonds, and commodities.