Singapore's reserves manager firm GIC Pte said that China's economic slowdown and credit crisis will affect investments all over the world. The statement was addressed in relation to the fund manager's plans to keep Singapore's US$100 billion holdings afloat.

According to GIC's chief economist Leslie Teo, the Chinese economic slump will have adverse effects of global equities. This will also trickle down to private and emerging-market equities, she continued. Teo considered China as a "key driver for global markets."

The Shanghai Composite Index declined by 43% as China used over US$650 billion of stimulus for the nation's infrastructure such as railroads, houses, and buildings. This stimulus spending wrecked the US$748 billion in the local market value, according to analysts.

"The Chinese recognize the need to reform and actually are actively taking measures," confirmed GIC's chief investment officer Lim Chow. He reassured that future financial plans of the country are very positive.