If roughly 10 to 20 percent of those crossover investors exited their positions, there would be "a shockwave through emerging markets," said Woo.
As if this wasn’t bad enough, check out this chart:
Meanwhile, China’s need for easier monetary conditions amid a softening economy, ongoing deleveraging campaign, and less supportive global growth backdrop means Beijing has "a gun pointed at their head" and no choice but to let their currency decline, he added.
This article was provided by Bloomberg News.