The Chinese government tried to manoeuvre its economy toward a soft landing today. It warned that the growth of the Chinese economy needed to slow down further. In response, mainland Chinese stocks plunged. Volatility in the Chinese market will increase substantially in 2007 and could result in a substantial correction.
International Hearld Tribune article has further details.
http://www.iht.com/articles/2007/01/12/business/chistox.php
This is your warning, if you own an emerging markets fund you should trade it in for an international fund that is primarily invested in developed countries.
Libby Mihalka
The Financial Pragmatist
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