China has been the major reason why emerging markets have underperformed, and a Chinese credit crunch may not be far off either, said Ing's Maarten-Jan Bakkum.
Since 2010, China has been the major reason why emerging markets have trailed behind developed markets. After the gigantic credit injection in the Chinese economy in 2008 and 2009 to help it cope with the world credit crisis, growth started faltering in 2010. The slowdown continues to this day. In the first half of this year, Chinese growth still amounted to 6.8%. The lower growth and increasing concerns for the sustainability of high growth in China have exerted substantial pressure on commodity prices in recent years. This has had a negative effect on major commodity exporters, such as...
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