Line chart tracks MSCI Emerging Markets Index and the Bloomberg China Credit Impulse Index.
Left y-axis: MSCI Emerging Markets Index, YOY change (%), right y-axis: Bloomberg China Credit Impulse Index, YOY change (%); x-axis: 2005-2022
The MSCI Emerging Markets index begins the period near 20% and ends at about -30% (Q3 2022). High points for change include April 2006 (above 58%), October 2007 (above 64%), February 2010 (above 87%), January 2018 (near 38%), and March 2021 (above 55%). Low points for change include November 2008 and February 2009 (both near -57%), May 2012 (near -22%), August 2015 (near -25%), February 2016 (over -25%), March 2020 (near -20%).
The Bloomberg China Credit Impulse Index begins the period near -5% and ends at about 1.5% (August 2022). High points for change include November 2009 (over 20%), May 2013 (near 11%), May 2016 (near 9%), and October 2020 (over 9%). Low points for change include May 2005 (more than -7%), February 2011 (over -9%), January 2012 (over -8%), May 2014 (near -7%), November 2018 (over -7%), and October 2021 (near -9%).
Sources: Bloomberg and Wells Fargo Investment Institute. Monthly data from January 1, 2005 to September 30, 2022. Bloomberg China Credit Impulse Index: monthly data from January 1, 2005 to August 31, 2022. The MSCI Emerging Markets Index captures large- and mid-cap representation across 24 emerging market countries, and 17 emerging markets, respectively, around the world. The Bloomberg Economics China Credit Impulse Index measures the impacts of new lending increments, or acceleration of credits, to GDP growth. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. Equity securities are subject to market risk which means their value may fluctuate in response to general economic and market conditions and the perception of individual issuers. Investments in equity securities are generally more volatile than other types of securities. Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. These risks are heightened in emerging markets.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.
- The reduction in Chinese credit hit emerging market (EM) performance, despite better conditions in other emerging Asia countries.
- Credit conditions have improved modestly, which should remove a recent headwind. Yet, EM equities still face a resilient U.S. dollar.