Foreign investors pulled cash from emerging Asia last week, most notably from China funds even as the market continued to rally.
Data from fund tracker EPFR indicates that foreign investors withdrew $2.1bn from emerging Asia funds in the week ending December 3, marking a second week of outflows.
China equity funds alone saw an outflow of $2.249bn - the most in three years of data, according to charts compiled by ANZ (see below).
The fact that foreign investors pulled out from China's market adds credibility to some analyst reports suggesting the three-week rally in the Shanghai market has been driven by domestic investors.
It also suggests the Shanghai-Hong Kong Connect scheme, which began on Nov 17, has hardly been the game-changer it was hyped up to be.
Meantime, Japanese equities saw an outflow of $539m, even as Tokyo's Nikkei 225 average hit a seven-year high.
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