China’s slowing economy is causing investors to pull back from global emerging markets, according to a monthly survey from Bank of America Merrill Lynch released Tuesday, Reuters reported. Surveyed fund managers indicated that allocations to emerging market equities in June hit their lowest level since 2008. According to a chief investment strategist at BofA Merrill Lynch Global Research, the market has “over-positioned itself for a shock from China.” Emerging markets stocks have suffered five straight weeks of losses, which contrasts the survey’s findings of renewed optimism in the eurozone and in the global economy.
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