Slowing China surfaces as market's latest worry

CHINA has not really featured as a major driving force for equity markets for many months - instead, investors have been obsessed by US Federal Reserve tapering for about nine months now - but the health of the Chinese economy this week suddenly became a key factor when news of an unexpected factory output contraction sent markets all over the world tumbling.

The Straits Times Index had been suffering from weak liquidity and demand when the China news hit, so combined with a 24.25-point loss yesterday, the in…