Volatility in Chinese markets has been a constant topic of discussion since the start of the year, but what does it mean for yield-hungry retail investors?
Chinese stocks suffered a bruising January, losing circa 20 percent, amid the release of weaker-than-expected manufacturing data and concerns over central bank policy. This rattled investors and retail fund managers across the globe and caused major volatility in developed markets.
However, robust trade data from China on Wednesday morning has led to some optimism in the emerging markets space once again. The country's exports rose 11.5 percent in March versus a year earlier, data showed. This is the first increase since June and the largest percentage rise since February 2015.
"The Chinese data means global demand for Chinese products has jumped and they are selling more to the world, so a possible start to stabilization in the economy," Nandini Ramakrishnan, global markets strategist at JP Morgan Asset Management told CNBC via email.
She further explained that this can be seen as a sign of higher demand in general which is a good sign for all economies.
Analysts had earlier warned that the Chinese slowdown could have an impact on other developed and emerging markets, causing concern among retail investors (individuals that trade for themselves rather than for an organization).
However, those bullish on the economy believe the slowdown was temporary since the country is slowly moving its focus from manufacturing to services. The massive size of the Chinese economy and its contribution to global GDP (gross domestic product) is one of the reasons a potential slowdown can be a concern not just for investors but also for central bank governors such as Janet Yellen, chair of the U.S. Federal Reserve.