Shanghai lurch seen as a healthy market correction

Emerging markets suffered a worrying jolt brought on by a sharp fall in the Shanghai market at the end of February, which led to a sell-off in most equity markets at the start of March. Investor nerves were tested when the Shanghai market fell 9% in a single day and while the days following the drop were marked by increased volatility and retreating markets, many fund managers and economists believe it was simply a much needed and healthy market correction, not the start of an equity market decline, pointing out that equity valuations in the region remain well supported. The fall in Chi...