Emerging markets not a 'safe haven' from credit crisis

Aberdeen says emerging markets, which recovered from the credit crisis faster than western economies thanks to high liquidity levels, could still suffer from a US downturn as countries such as China depend on US exports. Andrew McMenigall, senior investment manager of global equities at Aberdeen, says a bubble burst in China will prove painful as valuations look increasingly stretched, with shares trading at 41 times earnings. However, he highlights emerging markets have most of the world’s savings while the US and UK carry huge debt, and says he favours Hong Kong-listed companies as th...