Standard Charter casts doubt over emerging markets outlook

Standard Chartered said on Wednesday that it is doubtful over the future growth of emerging markets in the third quarter this year, given the ups and downs in stock market and unfavorable figures in those economies.

The bank said the developed markets would outperform emerging economies in the coming quarter, whilstthe Chinese mainland economy in the second quarter worsened compared to the first quarter, plus tightening capital flow and a series of change in policies, stock markets of both the mainland and Hong Kong are still full of uncertainties.

But it suggested that investors may buy in stocks when the Hang Seng Index fall below 20,000 points, which is likely to surpass Hang Seng China Enterprise Index and Shanghai A Share Index. Shares of real estate and financial sectors are advisable to follow , as the rumors about delisting in U.S. are unlikely to occur.

The bank also stated that returns in bond market would be limited, especially the local bonds of Asian countries. Neither are investors are suggested to enter the gold market, as it estimates the gold prices may plunge futher.

On June 27 Standard Chartered announced that it was on the track to meet forecasts for full-year operating profit of about 8 billion U.S. dollars but would miss its usual target of 10 percent profit and revenue growth.