The financial crisis in emerging markets offer opportunities for unprecedented performance, some market participants pointed out sharply.

Tracking the Global Fund to fund flows research EPFR Global noted that the recent depreciation of the dollar as the international capital inflows in emerging markets this year into the global emerging market equity funds of up to $ 600, breaking last year’s record 44.2 billion U.S. dollars. May 25 this year lows phase, MSCI Emerging Markets index has rebounded 29%, while the track MSCI World Index of developed markets over the same period rose just 17%.

Dominate the market performance

Emerging markets but also to the number of “BRIC” dominate.

From this year’s market performance, Brazil’s main stock index in Sao Paulo BOVESPA index (IBOV) 10 月 28 closed at 70740.3906, rose more than 3% of the beginning of the year; Russian RTSI index in October 1600 broke the mark, October 27 to close at 1600.09 points, the cumulative increase this year by about 10%, while statistical data show that the Russian stock market average price-earnings ratio is about 8 times lower than the level of emerging markets. Bombay Sensitive Index (SENSEX) rose 1.77% during the first half of this year, as the “BRIC” The only increase in the first half of the stock market. Since the third quarter, SENSEX index is quickly pulled, Oct. 28 to close at 19,941.04 points, up 14.18% compared with the beginning.

As the Chinese mainland market, the main stock index, the Shanghai Composite Index this year’s overall poor performance during the year drop of 8.5%, as the “BRIC” the only major stock indexes fell. However, despite the poor overall performance of the market, but the A-share market since the amount of financing this year, more than 720 billion yuan, becoming the world’s largest amount of the financing market.

French bank (Societe Generale SA) global strategy analyst Dylan Grice in the recently released research report that the major industrial countries around the world continue to adhere to the loose monetary policy, low interest rates and the Fed may introduce new stimulus policy is expected, the emerging market countries is expected to occur within the next two years the stock market wave of rising prices, the main stock index is expected to double to reach before the outbreak of the 2008 financial crisis, record high.

It is noteworthy that, compared to the S & P 500 Index of stocks, “BRIC” markets are still relatively low price-earnings ratio. Grice believes that if the “BRIC” stock valuations back to 2008 peak levels, then it means that their prices will likely double the current level.

Great expansion potential

Compared with the strong economic growth, “BRIC” capital market is still relatively weak, but has thus become the future of the global capital markets, the potential of expansion.

According to consulting firm McKinsey estimates, there are only total financial assets in emerging markets GDP of 165% – not including China, then only 145%. Deutsche Bank estimates that the Asian financial assets account for only 90% of GDP, while the United States GDP reached 360%.

Western capital markets due to the current more mature and tend to the limited growth potential, McKinsey expects the next few years, emerging markets, global capital markets will not just be an important source of growth, and almost “the only true platform for expansion.”

Goldman Sachs, “BRIC” the proportion of total global stock market capitalization from the current 18% to 30% in 2020, and 41% in 2030. Among them, the Chinese stock market value of the most eye-catching – China is expected to share in global market value from the current 11% to 20% in 2010, and 28% in 2030, and leapfrogged the U.S. as the global market first countries.

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