A new crossroads in Asia

A new crossroads in Asia

The financial crisis reset Western growth prospects, but emerging markets such as China are still looking for direction, says Gary Greenberg, head of global emerging markets at Hermes Investment Management.

There are a wide range of levers being pulled in emerging markets currently, from profound supply side reforms to deeper political shifts. China has seen a deceleration in growth and its stock market has moved into unloved territory. However, this moderation in growth is welcomed, as long as it is accompanied with a move toward more sustainable domestic economy. Stable growth For China, lower aggregate growth is a precondition for more stable and profitable corporate growth. Almost a year ago, China embarked on a series of reforms which promised, by giving the market a decisive r...