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.
China faces significant problems as inflation and property prices look set to form a bubble, says Hugh Young at Aberdeen Asset Management.
China will take several months to fully reverse the rising inflation trend witnessed in the second half of 2010, says Jupiter's Philip Ehrmann.
The FTSE 100 has seen a significant drop down to 5,889.62, falling 1.46% as strong growth figures from China prompt monetary tightening concerns.
Fundsmith founder Terry Smith says China is the story for 2011 and warns the economy could be poised to 'fall over'.
London's leading share index was down 0.37% at 5,954.39 in early trading on Thursday, hampered by disappointing results from US companies and weakness in Asia.