And the selloff is spreading to nations with the closest trade ties to China, such as South Korea and South Africa. Investors remain underexposed to China as they seek more consistent policy signals that can sustain the economic recovery. That has sent the ratio between emerging markets and rich nations down 5.6% this year, the biggest retreat since at least 2020. Since then, China’s economic data have indeed shown improvement. The MSCI China Index has tumbled 5.3% in April, erasing this year’s advance.

Source: The Edge Markets May 01, 2023 06:26 UTC