Prospect of 5 regions in emerging market at a glance

The countries covered by emerging markets usually refer to the division of the "MSCI Emerging Markets Index" (MSCI Emerging Markets Index). There are temporarily 27 emerging market countries recognized by MSCI. With the economic development of each country, the list will also be adjusted:

＊Asia Pacific: China, India, Taiwan, South Korea, Thailand, Indonesia, Philippines, Malaysia
＊Latin America: Brazil, Mexico, Chile, Peru, Argentina, Colombia
＊Eastern Europe: Russia, Poland, Hungary, Czech Republic, Greece

＊Middle East and Africa: South Africa, Saudi Arabia, Egypt, Turkey, United Arab Emirates, Qatar, Pakistan

China: Pay attention to the impact of policy

China is the world's second-largest economy, and its industries are widely distributed, unlike other emerging market countries that are over-concentrated in certain industries. Among them, state-level large enterprises related to people's livelihood, such as the financial industry, industry, communications, and wine industry, account for a large market value, and are also the main constituent stocks of the Shanghai Stock Exchange and the Shanghai and Shenzhen Index.

The other major category is Internet information companies such as Tencent, Baidu, and Alibaba. These companies have strong growth but are also volatile and have a very large market value, but they are not included in the common Shanghai and Shenzhen indexes.

Pay attention before investing in funds in China. Although they are also investing in China, some funds focus on Internet information companies, while others focus on the financial industry and transfer of assets. You must first look at the constituent stocks before investing.

Although China's economy is growing rapidly, it fluctuates sharply when affected by policies. In addition, foreign exchange control and the credibility of financial reports are also concerns for overseas investors.

Affected by deteriorating global demand this year, China's annual export growth rate and manufacturing-related data have continued to decline, and domestic consumption consumption that was originally expected has not improved. To stabilize economic growth, we still need to rely on policy stimulus effects.

Brazil: Pay attention to raw material prices

Brazil is quite rich in natural resources, not losing to China. Brazil's export surplus began to grow substantially after 2003, which also shows that Brazil has begun to attach importance to its position in the global market.

Markets in emerging countries such as Brazil have another advantage. The long-term trend is mainly upward. Therefore, from the perspective of long-term investment, it is less expensive to buy points, and investment risks are relatively reduced.

The epidemic has caused the annual growth rate of Brazil's exports to continue to decline. Investors are advised to pay attention to the Baltic Dry Bulk Index and raw material prices. If the two reverse upwards and verify that global demand improves, the Brazilian stock market has a chance to rise.

India: Economic growth rebounds

India is a country with a population second only to China. Its economy is growing rapidly and its overall scale is much larger than that of European countries. The industrial composition of the stock market in countries with large populations is usually also diversified, including finance, energy, consumer goods, information technology and software industries, and so on.

From the perspective of the economic conditions index, India’s economy is showing signs of improvement, but from the perspective of imports, India’s economy seems to be still deteriorating. The difference between the two comes from the substantial decline in imported crude oil. However, if you look at the actual crude oil imports, India's crude oil imports are stable, and the decline is mostly due to oil price fluctuations.

According to OECD and IMF estimates, India’s next year’s economic growth rate will be 6.3% and 7%, respectively, which is excellent whether compared with this year or other emerging market countries.

Taiwan, South Korea: mainly electronics stocks
Investment projects in Taiwan and South Korea are basically electronic stocks, and the two places are highly homogeneous. South Korea is a developed market, while Taiwan is an emerging market. For most Taiwanese, although Taiwan has fewer investment options and higher risks, it has the advantage of higher familiarity.

Russia: Oil prices favor Russian stocks

In order to counter the US shale oil and the global economy, OPEC announced that the production cut will be increased to 1.7 million barrels per day. However, from the perspective of the countries participating in the production reduction agreement, since the implementation of the production reduction agreement, Iran and Saudi Arabia have reduced their production by nearly 1.5 million barrels per day, while the output of Russia has increased slightly by 30,000 barrels.

With oil prices stable and its own production maintained, Russia's current account surplus remains high-end, and foreign exchange reserves continue to increase, and fundamentals are sound.