HSBC: The Whole Economy Is Under Pressure For The Development Of Emerging Markets.

In the third quarter of 2010, the HSBC emerging market index (EMI) dropped from 57.5 in the first quarter to 56 in the second quarter, to 54.3, although it is still higher than the peak level of global recession (43.4 in the last quarter of 2008), but the latest index is the lowest since the second quarter of 2009.

HSBC's latest figures reveal several areas where growth is weakening.

First of all, from the geographical perspective, China, Brazil and Russia have all weakened their economic growth, while India has remained stable for the time being.

Secondly, according to the industry theory, the strong export momentum seen in the early stage of manufacturing is rapidly weakening, and the confidence of the service industry in the foreground has dropped to the lowest point since the peak of the financial crisis.

Overall, the data released in the third quarter show that the pace of economic recovery in emerging markets has slowed down even more than in the US or the euro area.

At the end of last year, Global trade returned to its upturn, but the situation that had been so encouraging seemed to be fleeting. The reason for this is that the stock picked up at the beginning of the recovery was not eventually digested by demand.

Those emerging economies that are particularly dependent on manufacturing may have lost momentum.

Jian Shixun believes that China's continued strengthening of basic strength is driving commodity prices up, bringing benefits to net exporters of goods, but it is not conducive to net importers of goods.

In other words, countries in Latin America, the Middle East and sub Saharan Africa will benefit, but most western countries will be affected.