12 Jun 2015
Fund flow: EM Asia sees a large outflow – ANZ
FXStreet (Barcelona) - The Team at ANZ, summarizes the Asia-Pacific fund flows for the week ending 10 June 2015.
Key Quotes
“EM Asia registered a large outflow of USD 8,329m this week, a sharp reversal of the inflows in previous weeks. There was broad based outflows from both equities and bonds across the region (with the exception of Hong Kong for equities and India for bonds), with the magnitude of the outflows in the region exacerbated once again by China.”
“For this week, China equity funds registered an outflow of USD 7,115m from an inflow of USD 1,992m. This likely came on the back of another week of volatile price action in the SHCOMP index. MSCI’s decision not to include China A shares in their benchmark indices at this time, which came out towards the end of the cut-off week, may have contributed to the outflow.”
“Similarly, equity markets in Emerging Asia ex China also reversed to register an outflow of USD981m from an inflow of USD337m the week before. On the other hand, EM equities ex Asia registered a smaller outflow of USD 794m from USD 1,054m previously.”
“Outflows from China bond funds moderated to USD28m from USD93m while Emerging Asia ex China bond outflows accelerated to USD205m from USD6m, led by an increase in outflows in SE Asia markets.”
“There was a small increase in outflows from EM bonds to USD796m from USD738m, led by outflows in hard currencies.”
Key Quotes
“EM Asia registered a large outflow of USD 8,329m this week, a sharp reversal of the inflows in previous weeks. There was broad based outflows from both equities and bonds across the region (with the exception of Hong Kong for equities and India for bonds), with the magnitude of the outflows in the region exacerbated once again by China.”
“For this week, China equity funds registered an outflow of USD 7,115m from an inflow of USD 1,992m. This likely came on the back of another week of volatile price action in the SHCOMP index. MSCI’s decision not to include China A shares in their benchmark indices at this time, which came out towards the end of the cut-off week, may have contributed to the outflow.”
“Similarly, equity markets in Emerging Asia ex China also reversed to register an outflow of USD981m from an inflow of USD337m the week before. On the other hand, EM equities ex Asia registered a smaller outflow of USD 794m from USD 1,054m previously.”
“Outflows from China bond funds moderated to USD28m from USD93m while Emerging Asia ex China bond outflows accelerated to USD205m from USD6m, led by an increase in outflows in SE Asia markets.”
“There was a small increase in outflows from EM bonds to USD796m from USD738m, led by outflows in hard currencies.”