U.S.-China Financial Breakup Scenarios Are War-Gamed at BofA

With U.S.-China trade tensions deepening, analysts at Bank of America Corp. have war-gamed some potential implications for financial markets.

“What if China and the U.S. were to decouple financially,” a group led by David Cui, head of China equity strategy with the American bank, asked itself in a June 4 note to clients. It’s “not our base case but an emerging risk worth monitoring,” they wrote.