Filipino traders chat during a lull in trading at the Philippine Stock Exchange at the financial district of Makati on Monday, July 6, The external headwinds faced by emerging markets such as the Philippines have intensified as the specter of a financial crisis closer to home in the wake of a stock market rout in China added to jitters surrounding debt-strapped Greece.

He said one potential impact of the crash on the Philippines, however, would be through foreign direct investments FDI. A more realistic and direct impact is the fundamental reason behind the crash—an overcapacity in the Chinese economy, Lacson said.

But if this leads to a major economic depression in China, Lacson said there would be several areas where the Philippines should be more worried about. Firstly, he said the country would be concerned about commodity prices such as copper and nickel, its two major exports to China, the biggest consumer of these metals.

He noted that there had already been a sharp decline in commodity prices and those of mining stocks this week.

Asian Stock Markets - CNNMoney

It warned that the ripple effect from the market correction has yet to show up—slower growth, poorer corporate earnings and a higher risk of a financial crisis. We expect this will likely hurt consumption down the road.

China's Investor Army Is Bracing for More Stock-Market Pain - Bloomberg

If the Chinese market continues to fall sharply, Merrill Lynch said stock lending-related losses could run into trillions in renminbi, of which banks and brokers may have to bear a meaningful share. Wounded soldiers from Marawi fighting recover in 'Heroes' Ward' June 21, Senate may reopen probe on Espinosa slay case—Koko June 21, BPI details human error in glitch June 21, China , China crisis , Finance , Philippines , Stock Markets , stocks.

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