Salient to Investors:

  • Hertta Alava at FIM Asset Mgmt said Hong Kong is usually very safe so the riots are unexpected, while Russia’s economy is getting weaker.
  • Dmitry Polevoy at ING said the market is getting closer to panic, while the ‘ghost’ of peak external debt payments in September and December is the most often-cited enemy of the ruble.
  • The MSCI Emerging Markets Index is at 10.7 x estimated earnings versus 14.8 x for the MSCI World Index.
  • Arbitrage opportunities between dual-listed stocks in Hong Kong and Shanghai are disappearing as prices move toward parity before the cities link their bourses.

Read the full article at http://www.bloomberg.com/news/2014-09-29/emerging-stocks-drop-to-four-month-low-after-hong-kong-protests.html

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On September 29, 2014   /   China Economy, China Stocks, Emerging Markets Stocks, Investment Mathematics, Ruble