Credible policy support crucial for China's 'two-speed' economy

Despite the negative sentiment and a rise in risks, the fundamentals of Asia are better positioned to withstand an external shock than other EM regions, according to Jade Fu, investment manager at Heartwood Investment Management

The MSCI Emerging Asia index lost nearly 30% of its market value from the peak to trough between April and August 2015. Valuations have only been cheaper four times since 1985 and those were during periods of global recessions or regional crises. Two-speed economy Needless to say, the overwhelming source of investors' fears is China. Investors have been quick to downgrade growth forecasts for this year, but even the most bearish market forecasts see an economy growing at above 6%, and most are looking for a modest pick-up in growth in the fourth quarter of 2015. We have long held th...