This is John Bachelor in exchange with my colleagues Gordon Chang and Fraser Howie about the decision

by J.P. Morgan to put out a bullish report on Chinese stocks given the scale of collapse of the Chinese

economy, real estate, the consumer, trade, manufacturing, agriculture.

It is surprising and Gordon has a suggestion why and Fraser answers immediately.

Much more of this tonight. The Bulls in China, question more.

Thank you.

Fraser, this J.P. Morgan call on the Chinese stock market

just strikes me as being something that they feel they

have to do in order not to anger Beijing.

Because we've seen a lot more coercion from the central authorities on players both domestic and foreign.

You mentioned that Jimmy Diamond was

just in Beijing for that big conference. It seems like this is a politically

directed analysis, right? Well I would let's put it this way Gordon, I think all the signs are, maybe it is, maybe

it isn't, but the trouble when it comes to doing any sort of analysis or any investment bank

dealing in China, the politics is always hanging over them.