According to data from the Institute of International Finance (IIF), in view of the downturn in the Chinese market, China's ** and bond markets both saw capital outflows in January this year, including an outflow of 3.2 billion yuan and a bond market of 4.7 billion yuan. This is the seventh consecutive month of outflows.
According to data released by the Institute of International Finance on Wednesday (February 7), during the same period, emerging market bonds and ** attracted a net inflow of 35.7 billion yuan into foreign portfolios. Among them, the bond market investment was about 42.7 billion yuan, a new high since June 2021, and ** there was an outflow of 6.9 billion yuan.
The ** portfolio of emerging markets excluding China experienced an outflow of 3.8 billion yuan in January after two consecutive months of inflows. In the bond market, the inflow of funds into the emerging market bond market outside China reached RMB47.3 billion, the highest monthly since October 2022. Among them, inflows into the Indian bond market maintained positive growth for the 10th consecutive month, with inflows exceeding $2.5 billion in January, the highest level since March 2019.
Jonathan Fortun, an economist at the Institute of International Finance, said that the expectation that the Fed will adopt more policy in the future will be the main driver of capital flows in the coming months. Investors are adjusting for possible rate cuts**, and more money could flow into emerging markets in the coming months.