Why the gold rush to emerging markets could spell financial disaster

mark townsend

The Chinese economy grew an astounding 9.5% in 2004 - strong growth in GDP that will undoubtedly signal greater investment in one of world's fasting-growing economies. It is seen by some as a modern day gold rush.

However, this seeming 'blue-sky' scenario masks significant risks for investors.

Similar to the gold rush, corners are being cut in the pursuit of profits, setting the scene for future casualties in many relationships with subsequent losses in investment and reputation.

Risk to rep

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