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Why this is not a re-run of previous EM crises

An 8.5% fall in the Shanghai Composite Index has sent shockwaves through EM equity markets, but we continue to think that there are few parallels between what is happening now and previous crises. While the differences do not preclude further falls in equity prices in the near term given the strong downward momentum in the market, they may set the scene for a rebound once the storm blows over.

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