Bank of America claims these 6 unexpected developments illustrate how dire the current state of the Chinese economy is.

Despite predictions of a post-pandemic economic resurgence, China has seen its GDP for the second quarter fall well short of projections, and the nation has entered deflationary zone for the first time since 2021 as a result of decreasing prices.

In a frantic effort to pretend everything is OK, Beijing has lowered interest rates and ceased publicizing ugly young unemployment numbers.

Bank of America analyst Michael Hartnett released a research note on Friday in which he described the new China figures as “positively shocking” and warned of the increased potential of a significant credit event that would send stock prices much down and demand a coordinated international reaction.

One source of “event risk,” he continued, is the continuing liquidity issues for real estate giant Country Garden and shadow bank Zhongrong.

Hartnett compiled six more indicators of the dire state of the world’s second-largest economy, which include:

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