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US cash injection may 'shock' emerging markets: China

9-Nov-2010 7:18 AM

China's Vice Finance Minister Zhu Guangyao stated the US “has not fully taken into consideration the shock of excessive capital flows to the financial stability of emerging markets” adding that the US Federal Reserve’s decision to inject USD600 billion into the economy might “shock” emerging markets by flooding them with capital (Bloomberg, 08-Nov-2010).