Emerging market outflows totalled $2.1 billion in August while the MSCI Emerging Markets Index registered a loss of 21 per cent. Signia Wealth is one of several wealth managers, including ABN AMRO Private Banking and Brown Advisory, who have recently urged investors to look through the smog of short-term volatility. 

“A lot of people are concerned that China is masking a deeper problem, but even if Chinese GDP was to grow closer to 5 or 6 per cent rather than the expected 7 per cent, it isn’t a crisis. There are imbalances in the country, but it does not mean that a crisis is imminent. At this stage banking problems appear to be contained and the country is not relying on external finances, so if there is a crisis it should be contained,” de Merlis said.