China fears resurface

The past few days have seen renewed fears of a hard landing in China ripple through EM financial markets. These fears are nothing new and have in fact resurfaced at a time when EM export growth to China has edged up a little. Our view remains unchanged: China should avoid a hard landing, but shifts in the drivers of its economy over the coming years will weigh on several parts of the emerging world, notably commodity producers in Latin America and South Africa.