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China Risks and Higher Global Rates Hang Over Emerging Markets
The emerging-market (EM) rating outlook is balanced, but the slump in China’s property market and higher global bond yields are key downside risks, Fitch Ratings says in a new report. The slowdown in China’s property sector and downside risks to its GDP growth add to risks facing EM economies given the impact on global trade, commodity prices and financial market conditions. Moreover, a sudden stop in Chinese bank lending has reduced a critical source of financing for many EMs, while China’s different views from other creditors on debt restructuring is delaying reaching agreements. Fitch estimates that the EM ... (full story)