“We are moving away from a U.S. – or Europe-led world to a world led by China,” writes Stephen King, Chief Global Economist at HSBC in a report. HSBC’s Emerging Market Index for the last quarter of 2012 tells investors to think of the global economy in terms of “two separate narratives.” The first is the “old world” consisting of the U.S. and Europe, which continue to experience an ongoing deleveraging. The second is the “new world” consisting of the “structurally dynamic” emerging markets in general, but China in particular.

Read Here – The Diplomat