Greg Gibbs, analyst at Amplifying Global FX Capital, suggests that Chinese equities were relatively weak in Q4 while many EM markets were showing relative stability and also confidence in the Chinese economic outlook has deteriorated.
Key Quotes
“A key issue is the US-China trade dispute that appears to have dampened economic confidence in China. However, the decline in shadow-banking finance appears to have significantly tightened financial conditions for the private sector.”
“China remains a key risk for the global economy. Overall economic indicators have slowed to the lowest growth rates since the 2009 global recession. The rate of growth still seems solid, reported above 6%, but the fall in global indicators of trade growth that have largely stagnated in a number of large export-led economies; including Germany, Japan, Taiwan and Korea, suggests that the slowdown in demand from China may have been more severe.”
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