China's burgeoning credit crisis casts a long shadow

Talk of US quantitative easing sent emerging markets tumbling, but exposure to Chinese debt was a key factor in their downfall. 

Data compiled by Bloomberg indicates about one trillion US dollars has been wiped off the value of emerging markets stocks since 22 May.

That was the day when US Federal Reserve chairman, Ben Bernanke, signalled the quantitative easing program, where US$85 billion ($95.2 billion) of government bonds and mortgages are bought, could be stepped down "in the next few meetings" of the Federal Open Market Committee.

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