Why you must tread carefully in emerging markets

One classic feature of recessions is that people discover just how much fraud and dirty dealing was going on during the boom times. And Asia is no exception, as these stories illustrate.

One classic feature of recessions is that people discover just how much fraud and dirty dealing was going on during the boom times. Asia's no exception, and some of the stories below illustrate why you really need to take your due diligence seriously when you're investing in emerging markets.

During the good times for example, the Singapore Stock Exchange (SGX) made a big effort to attract listings from Chinese companies. Now a series of scandals among these S-chips is hurting its image as a high-quality market.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.