The Shanghai stock market crash and the potential impact on China's consumers and other emerging markets should be front and center for investors, Allianz Global Investors CEO Elizabeth Corley said Thursday.
A rebound in China's stocks on Thursday following a more-than-30 percent correction is reassuring, she said, but the situation raises questions about China's transition from an economy driven by exports and investment to one fueled by the consumer.
"Is this going to have a knock-on effect onto consumer spending?" she asked during an interview on CNBC's "Squawk Box." "At the moment, it seems OK, but I think that's the thing we will be watching. We think, long term, China's a great buy, but right now, we think if anything the valuations are going to come off a little bit more."
Those valuations, driven by overleverage, had gotten "way out of control," Corley said.
China's banking regulator on Thursday announced new measures to stabilize capital markets. That followed action taken late Wednesday by Chinese authorities to prevent shareholders with a 5 percent or greater stake in publicly listed companies from selling those positions in the next six months.