Salient to Investors:
The cost of 3-month puts on the iShares FTSE China 25 Index Fund have risen to the highest since September 2012.
Morgan Stanley has joined UBS and Barclays in lowering predictions for China’s economic growth.
Derrick Irwin at Wells Fargo Advantage Emerging Markets Equity Fund said investors are nervous about what we will find out once central bank liquidity is withdrawn – markets that have thrived on large amounts of global liquidity have struggled.
Qinwei Wang at Capital Economics said any near-term rebound will not be strong due to the lack of notable recovery signs in the economy, and big commodity producers will not perform well as China’s investment slows.
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