China’s $1.7 trillion hangover

China’s $1.7 trillion hangover

Up to 40% of China’s $1.7 trillion LGFV loans are at high risk of default. What’s a panicking Beijing to do?

Euromoney’s 2012 FX survey results

Euromoney’s 2012 FX survey results

Access the results now

July 2006

Market sentiment: Investors lose their risk appetite

by Peter Koh

The equity market’s violent reaction to seemingly innocuous data has puzzled many commentators. At first bond investors reacted much more calmly to inflation fears but subsequently they seem to have been infected by the equity investors’ pessimism.


Although inflation fears have played a part, other factors have made a contribution.

“The plainer, but more compelling, argument for recent market movements is that, first, risk appetite was extended across asset classes (investors were simply too complacent on risk assets), and, second, that the downturn which ensued was...


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