China's lost credibility to weigh on emerging markets: Citi strategist

Singapore

CHINA is now beset with problems of credibility, as the market is deeply sceptical that the central bank will be able to defend the yuan, a senior strategist at Citi Private Bank said on Wednesday.

The further weakness in the yuan against the greenback will, in turn, create more drag on emerging-market assets, though investors can hunt for value in companies that are in long-term growth sectors such as those in healthcare and technology, said Ken Peng, investment strategist for Asia-Pacific, at Citi Private Bank.