Funds Data

Flows to China retreat

  • Published 16 Dec 2010

Fears of further tightening in the build up to the announcement of November's soaring inflation figure deterred investors away from China.

China funds reported net outflows of $12.7m during the two weeks ending Dec 8 (chart 2.2 and 2.4). Manager flows to China equities also fell to $717m during the period, down over 30% from two weeks prior (chart 1.1 and 1.2). The central bank's decision to raise reserve requirement rates for the sixth time on Dec 8, however, is likely to help investor flows to China in the coming two weeks, said Cameron Brandt, senior analyst at EPFR Global. Shanghai's composite index closed up 2.9% on Dec 10 the first day of trading after the announcement.

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