Barriers to portfolio investments in emerging stock markets

Some may fear that globalization is under threat from populist politics, but that hasn't stopped many investors from seeing renewed opportunities in emerging markets and China. From the surprise U. The International Monetary Fund on Tuesday warned in its latest world outlook that reversing free trade policies would increase stagnation.

In particular, emerging markets are the way "to get an exposure to those more endogenous, internal demand themes," he said.

barriers to portfolio investments in emerging stock markets

The IMF expects a pickup in growth among developing economies to offset a slowdown in advanced economies, resulting in a net increase in global growth from 3. Major Wall Street firms have turned positive on emerging markets in the last several months.

For example, BlackRock upgraded emerging market equities to an "overweight" rating in August, following Bank of America Merrill Lynch's reversal in April of a five-year negative view to dec;are itself "structurally bullish" on emerging markets. Investors have been cautious on emerging market investments given their sensitivity to the battered commodity sector — the iShares MSCI Emerging Markets ETF EEM is still more than 30 percent below its pre-financial crisis peak.

But going forward, several analysts say it's important to focus on investing in emerging market subsectors whose growth isn't too dependent on commodity prices but comes instead from consumer-oriented industries.

barriers to portfolio investments in emerging stock markets

But a more focused emerging market fund such as the Emerging Markets Internet and E-commerce ETF EMQQ is up 32 percent over that time. Emerging market "equity strategy is increasingly nuanced," Justin Leverenz, director of emerging market equities at OppenheimerFunds, said at the firm's EM Symposium last week.

Three industry themes Leverenz sees are health care, education and leisure, especially in China. Among the top holdings in Leverenz's Emerging Markets Innovators Fund and Developing Markets Fund are China's largest pharmaceutical firm SinopharmChinese travel services site Ctrip.

Such strategies highlight how emerging markets and China may increasingly be viewed as centers of innovation. He's also optimistic on longer-term growth in forex trading tutorial in hindi pdf such as Argentinaand in areas such as renewable energy and agricultural innovations. To be sure, the new investment thesis on emerging markets, particularly in China, depends on sustained consumer demand.

China is in the middle of a advantages of using a stockbroker transition from an economy driven by manufacturing and exports to one supported by consumption and services, and the shift has been bumpy at times.

The China Beige Book, a private survey of Chinese business conditions, said in an advance look at the third quarter that metrics on the "old" economy strengthened while those of the "new" economy weakened.

How Stock Market Works

China's economic growth is forecast to moderate from 6. Emerging markets and developing economies as a whole should see growth pick up from 4. That far outpaces the IMF's estimate for U.

While concerns around China's rapid economic rise are a factor behind anti-trade sentiment in the United States, "what's driving the protectionism as we look at it … the principle driver of it is that global trade doesn't seem to be inclusive," Michael Evans, president of Alibaba Groupsaid at the OppenheimerFunds Emerging Markets Symposium. As a company supporting small businesses and consumers, "we believe more inclusive global growth can be executed through the Internet with great payments and great services," Evans said.

He also said Jack Ma, executive barriers to portfolio investments in emerging stock markets of Alibaba, has called for an alternative to the World Trade Organization with a World e-Trade Platform that would provide international rules barriers to portfolio investments in emerging stock markets barriers to e-commerce.

Asia Europe Stocks Commodities Currencies Bonds Funds ETFs Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Make It Entrepreneurs Leadership Careers Money Specials Shows Video Top Video Latest Video U. Video Asia Video Europe Video CEO Interviews Analyst Interviews Full Episodes Shows Watch Live CNBC U.

Business Day CNBC U.

Primetime CNBC Asia-Pacific CNBC Europe CNBC World Full Episodes. Log In Register Log Out News Economy Finance Health Care Real Estate Wealth Autos Consumer Earnings Energy Life Media Politics Retail Commentary Special Reports Asia Europe CFO Council.

Today's Stock Market News and Analysis - ydigatocop.web.fc2.com

Asia Europe Stocks Commodities Currencies Bonds Funds ETFs. Make It Entrepreneurs Leadership Careers Money Specials Shows Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener.

Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Video Top Video Latest Video U. Video Asia Video Europe Video CEO Interviews Analyst Interviews Full Episodes.

Primetime CNBC Asia-Pacific CNBC Europe CNBC World Special Reports Top States Paris Airshow Trailblazers Trading the World CNBC Disruptor 50 Lasting Legacy Modern Medicine College Game Plan Investing in: Israel Tech Drivers The Brave Ones Trading Nation Shaping the future Future Opportunities.

Register Log In Profile Email Preferences PRO Sign Out.

CIS & CEE Capital Markets Conference | London Stock Exchange Group

If you think globalization is about to shut down, think again Analysts advise focusing on emerging market subsectors whose growth isn't dependent on commodity prices but instead comes from consumer-oriented industries.

Peter Parks AFP Getty Images.

Barriers to Portfolio Investments in Emerging Stock Markets - Asl? Demirgüç-Kunt, Harry Huizinga - Google Livres

But some strategists say investors are thinking differently about global trends. To view this site, you need to have JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser.

Barriers to portfolio investments in emerging stock markets (English) | The World Bank

Download the latest Flash player and try again. YOUR BROWSER IS NOT SUPPORTED. Please upgrade to watch video. The requested video is unable to play. The video does not exist in the system. Please disable your ad blocker on CNBC and reload the page to start the video.

inserted by FC2 system