Inflows into emerging markets could see a short-term pause as investors consider the impact of inflation in China and other macro issues, says Schroders' CIO Alan Brown.
Brown says although EMs remain an attractive investment on a long-term view, there is some concern about the easy monetary policy in the US potentially being exported to countries in Asia. Many of them either formally or informally link their currencies to the US - including China. However, he says: "What has given us some comfort - although certainly we are still watchful - is we have seen the Chinese authorities raise the reserve ratio on numerous occasions, and we have seen the Hong Kong authorities instruct their banks to require higher levels of interest coverage and lower levels of...
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