China equity funds post outflows
China equity and bond funds saw money flow out despite indebted property giant, Evergrande, making a last-minute and unexpected payment and announced it will move away from property development to the electric vehicle business, according to EPFR.
China equity funds posted their largest outflow in over two months, although retail commitments hit their highest level since early June, the Informa subsidiary said.
Additionally, funds with socially responsible (SRI) or environmental, social and governance (ESG) mandates extended their longest outflow streak since a seven-week run ended in mid-March of last year.
Also, investors looking to emerging Asia announced they had shifted their focus from China to Korea and some of the region’s smaller markets while Thailand, Malaysia, and Indonesia have announced plans to reopen their borders starting next month and flows into Malaysia equity funds jumped to a nine-week high while Indonesia equity funds posted their fifth consecutive inflow.
Source: EPFR
EPFR-tracked bond funds, according to which US bond funds were the only group to take in significant sums of fresh money while global, emerging markets and Europe bond funds posted inflows.
At the country level China bond funds posted consecutive weekly outflows for the first time since late 1Q20 while flows into Korea bond funds hit a 42-week high.
Overall, EPFR-tracked equity funds pulled in $24.5 billion during the week ending 20 October. Bond funds absorbed $5.7 billion, balanced funds $3.9 billion and alternative funds $1.7 billion while $4.1 billion flowed out of money market funds.
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