Somerset warns 2016 could be 'most painful' year for China

Market had volatile start to the year

Emerging market specialist Somerset Capital Management has said this year could be even more difficult for emerging market equities, with China suffering "maximum pain" in its stockmarkets.

Investors in EMs were hit with heavy losses last year, particularly at the end of August as China's Shanghai Composite index fell by 8.5%, leading to global repercussions. Volatility since the start of the year, again due to China fears, shows investors are right to remain concerned about the region. The IA Global Emerging Market sector has lost 17.7% over the past year to 15 January, according to Morningstar, while the IA Asia Pacific Ex Japan sector is down 12.5%. Pidcock, Mobius and Rock: How concerned should investors be about China contagion? Mark Asquith, head of investmen...