Capital flow in Emerging

markets

Emerging Markets
Is the one which is progressing
towards an advanced economy
Common Characteristics includes:
Market Exchange
Regulatory Body
Liquidity in local debt and equity
market

Which countries are emerging

markets
Different institutions have different
lists of countries as emerging
markets
IMF & MSCI-23, S&P & Russell-21
while Dow Jones-22
Brazil, Chile, China, Columbia,
Hungary, Indonesia, India, Malaysia,
Mexico are common in each list

Capital Flows
Refers to all financial flows- banks,
FDI and portfolio management in
between residents and non-residents
Some emerging market indices are:
MSCI
S&P Dow Jones
FTSE
Vangaurd

Current Trend

Reasons for Declining

Capital Flow
Falling commodity prices
Stock market crisis in China
Emerging markets vulnerable to
external shocks
Outlook for 2016 is both uncertain
and bleak