Back
28 Nov 2014
EPFR fund flows – EM Asia ends a four-week run of inflows – ANZ
FXStreet (Barcelona) - The ANZ Research Team shares the EPFR Fund Flow data (for week ending 26th November), and notes that EM Asia registered an outflow amounting to $0.4bn for the first time in four-weeks.
Key Quotes
“EPFR fund flows data showed outflows from EM Asia this week of USD0.4bn, ending a four-week run of inflows. Equities accounted for all the outflows, with bond funds managing to register small inflows.”
“China was the main reason behind the equity outflow, seeing USD0.8bn pulled out. So far, the Shanghai-Hong Kong Stock Connect, which is into its second week of operations, has not managed to spur a pick up in fund flows. Even last week’s surprise PBoC rate cut, which sent Chinese equities higher, failed to entice fresh flows.”
“There were general outflows across EM as a whole, in both equities and bonds. Asia accounted for most of the USD0.6bn equity outflows, while Latam was the main contributor to the USD0.4bn outflow from bonds.“
“Indeed, looking at cumulative equity flows into EM Asia and USD/Asia, we note that the broad relationship has broken down in recent months. The lift in equity flows since the middle of the year has failed to stem the decline in Asian currencies.”
“We note that the strong recipients of inflows have been European and US bonds, which explain their continued move lower in yields.“
Key Quotes
“EPFR fund flows data showed outflows from EM Asia this week of USD0.4bn, ending a four-week run of inflows. Equities accounted for all the outflows, with bond funds managing to register small inflows.”
“China was the main reason behind the equity outflow, seeing USD0.8bn pulled out. So far, the Shanghai-Hong Kong Stock Connect, which is into its second week of operations, has not managed to spur a pick up in fund flows. Even last week’s surprise PBoC rate cut, which sent Chinese equities higher, failed to entice fresh flows.”
“There were general outflows across EM as a whole, in both equities and bonds. Asia accounted for most of the USD0.6bn equity outflows, while Latam was the main contributor to the USD0.4bn outflow from bonds.“
“Indeed, looking at cumulative equity flows into EM Asia and USD/Asia, we note that the broad relationship has broken down in recent months. The lift in equity flows since the middle of the year has failed to stem the decline in Asian currencies.”
“We note that the strong recipients of inflows have been European and US bonds, which explain their continued move lower in yields.“