After more than a decade of remarkable economic growth and resilience, China’s economic slowdown together with rising US rates, a stronger dollar, and a languishing oil price are conspiring to bring the first true test of the emerging markets growth story this millennia.
As a result, investors, even the most hardened emerging market specialists, have some tough investment decisions to make. Decisions which, at their most simple, come down to whether or not they choose to either stick with or twist on their emerging market investments.
Emerging Markets Investing: Stick or Twist? is a timely look at how global institutional investors are thinking about and positioning their investments in emerging economies. This report was commissioned by EMIS and produced in partnership with Euromoney Institutional Investor Thought Leadership. The report draws on the results of a global survey of senior investment professionals.
Over the long term the growth narrative of the emerging world still looks strong and compelling, but in the next 12 months at least emerging economies are expected to be tested by a multitude of macro-risks that threaten to flush out the last pockets of foreign capital. Globally institutional investors are rightly concerned about the impact of these risks, and top among them is the potential of a hard landing for China.