Bank of America Merrill Lynch expressed in a report on Tuesday that China is not likely to drag the global economy back into recession.

Top experts concluded that China's economy will steer clear of a hard landing and the government will contain the risks arising from its financial market turbulence.

They also pointed that although China's slowdown will weigh on investor confidence, it won't cause major negative spillovers to the global economy based on an analysis of trade, portfolio and commodity channels.

Meanwhile, BOA Merrill Lynch thought that Chinese demand of oil was not a major factor pushing down global oil prices. The sharp drop is mainly caused by oversupply.

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