Wall Street to clients: Brace for more China woes

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Investors observe stock market at a stock exchange hall in Nanjing, Jiangsu Province of China.

Here we go again. Global markets are falling on weaker-than-expected economic data out of China and Wall Street sees more trouble ahead.

The Shanghai composite closed down 1.9 percent Tuesday as China's November export data declined by 6.8 percent year over year versus the negative 5 percent consensus estimate.

Bank of America Merrill Lynch's Sylvia Sheng believes the numbers signal a weakening global economy, saying in a note to clients Tuesday:

"The downside surprise in export growth came against favorable base and calendar effects, pointing to sluggishness in external demand from DM (developed markets). ... We believe the underlying trend in trade growth continues to weaken, which reflects persistent weakness in both global demand and fixed asset investment in China."

Other Wall Street firms agree more bad news is coming for the world's second-largest economy.

Here is what Goldman Sachs said on China and the companies that may be most at risk ...