Global Financial Markets and China Economic Growth Industrial

emerging markets: Slowdowns in China economic growth and industrial output reverberated through global financial markets last year, causing prices of equities and commodities to plunge in both emerging markets and advanced economies, according to Euro News. The IMF said markets have become extremely sensitive to the economic signals coming from China and that policymakers there must not send mixed messages. In a portion of its latest Global Financial Stability Report, the IMF said developments in emerging markets now account for one-third to 40 percent of the variation between stock market returns and exchange rate fluctuations worldwide. As China role in the global financial system grows, clear and timely communication of its policy decisions, transparency about its policy goals, and strategies consistent with achieving them will be increasingly important to avoid volatile market reactions with wider reverberations, the IMF said in parts of the report released on Monday. The IMF said modelling of equity returns in 13 other emerging markets and 25 advanced economies found that shock impacts from China turned statistically significant shortly after the 2007-2009 financial crisis. Markets will be increasingly influenced by the sheer size of China economy, more financial linkages, such as the listing of Chinese companies on international stock markets and the growth of the yuan use in international transactions. (news.financializer.com). As reported in the news.