Investor confidence in emerging markets is continuing to plummet, with a recent fund managers' survey showing that equity investment in the group of countries has fallen to its lowest level since December 2008.
The BofA Merrill Lynch Fund Manager Survey for June showed that about 9 percent of asset allocators were underweight emerging market equities - the first underweight reading since 2009 and down from a 3 percent overweight position in May.
"A net 25 percent of the global panel say that emerging markets is the region they would most like to underweight in the coming 12 months - the lowest ever reading," the BofA Merrill Lynch report said.
The bearish sentiment towards emerging markets is tied to investors' growing belief that a hard landing in China is now the greatest tail risk to global markets, according to the survey. About 31 percent of the regional fund managers said that China's economy will weaken in the next 12 months, compared with 8 percent in May.
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