Challenges and opportunities in emerging market stocks

As investors head into the new year, Invesco believes a fair assessment of an array of forces suggests a mixed outlook for Chinese and EM stocks. However, EM stocks have been so deeply underowned and out of favour. For one, ongoing improvement in Chinese financial conditions could brighten the outlook. Moreover, it seems the coronavirus has generally had a diminishing impact on the global economy, the wild card being the scope and duration of possible lockdowns.