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.
AUTHOR
Oksana Patron
Recommended for you
The merger with L1 Capital will “inject new life” into Platinum, Morningstar believes, but is unlikely to boost Platinum’s declining funds under management.
More than half of the top 20 most popular shares bought by advised investors during the first half of 2025 were ETFs, according to AUSIEX data.
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
