Fed Chairman Jerome Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided Fed in years.Market Insiderread more
Boris Johnson will be meeting President Donald Trump to discuss a potential post-Brexit trade deal just as he tries to court EU leaders for a new withdrawal agreement.World Politicsread more
U.S. Secretary of State Mike Pompeo says Huawei CFO Meng Wanzhou, who is under house arrest in Canada and facing extradition to America, is not a bargaining chip in the trade...Technologyread more
Arturo Estrella has a message for recession naysayers: It could hit sooner than you think.Marketsread more
Accountants in Hong Kong took to the streets on Friday to call for the government to accept five demands of the people, including the complete withdrawal of a now-suspended...China Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
Local governments commonly share single service providers, making many vulnerable at once. On top of this, ransomware has often been used to mask more targeted, malicious...Technologyread more
The unlikely alliance would in theory enjoy a relatively comfortable majority in the parliament's lower house but would rely on a handful of sympathetic but unaligned...Europe Politicsread more
Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy.Central Banksread more
Meanwhile, investors look ahead to Fed Chair Jerome Powell's speech at a yearly central banking symposium in Jackson Hole, Wyoming.Asia Marketsread more
The U.S Energy Information Administration (EIA) says Australia is on track to consistently export more LNG than Qatar.Oil and Gasread more
Chinese stocks were volatile again overnight, but closed well off session lows, as investors remained doubtful of the efficacy of Beijing's recent market rescue measures.
"The bubble is bursting," and predicting the bottom is anyone's guess, Roach told CNBC's "Squawk Box. " He added, however, that China's efforts to transform its economy remain unchanged, which he views as "good news."
The Shanghai composite rocketed more than 80 percent higher over the past 12 months in what Roach called an "enormous speculative frenzy."
Since hitting a seven-year peak of 5,166.35 on June 12, the market has fallen about 27 percent—triggered by a host of factors, including an unwinding of margin trading and concerns over lofty valuations.
Despite the recent rout, the Shanghai composite was still 15 percent higher for the year as of Tuesday's close.
"The market was underperforming when the economy was booming. And the market surged as the economy was slowing," the Yale University senior fellow said. "The bottom line on China, and I picked this up loud and clear in travel there over the last month, is this model shift from manufacturing-led exports ... to service-led consumer demand [economy] is something they are continuing to emphasize."
China is also trying to address its debt-to-gross-domestic-product ratio, which some estimates peg at more than 225 percent, Roach said.
"[But] they don't have a full array of capital markets to support the economy, like places like the United States," he continued. "So they have to rely on much more debt financing to grow this investment-led economy. They went too far, especially in the property area."
Still, Roach said the Chinese economy will stabilize around 6.5 percent to 7 percent growth. "It's not going to go to zero as some of the China bears" have predicted, he said.