Money is still chasing emerging markets in trade disputes.
Column:Industry dynamic Time:2018-04-19

Since the outbreak of trade disputes, large amounts of money have flowed out of funds investing in U.S. stocks, while emerging markets continue to be sought after by international investors.

Between March 22 and March 28, according to lipper, a combined $14 billion flowed out of funds in the U.S. market, the highest since the U.S. stock market plunged in February. The outflow of funds is clearly a concern over trade disputes between China and the United States.

In the same week, $100 million of money still poured into the tech sector, apparently believing that the fall in tech stocks affected by the facebook scandal was only temporary. In fact, technology stocks have been high for a long time, and investors have withdrawn, but there are many buying attitudes.

According to the international investment company institute data, March 15 to 21, investors to redeem the $17 billion from U.S. stock funds, and the previous week, U.S. equity funds and net inflows of $19 billion.

Amid concerns about risky assets, money has been pouring into money funds and bond funds. At the same time, a number of American investors have invested their money in international markets. The U.S. market's international equity fund received $340 million from March 22 to 28. However, the funds were not in favor of developed markets, while European equity funds still had outflows of $1.2 billion and Japanese markets had redemptions of $638 million. American investors are concerned about currency risk, and Europe's past performance is less than ideal.

With the obvious contrast is that global investors are still keen on emerging city often march, global investors put $7.6 billion into emerging market equities and bonds investment, was totally opposed to sell in February. Figures from the international financial organization show that large inflows in March reversed a $8 billion outflow in February. Strong inflows suggest investors are still optimistic about the outlook for emerging markets despite a trade dispute between the us and China.

On the fund side, for example, the fund has attracted $211 million in inflows from March 17 to 23.

About $730m of overseas money flowed into Chinese shares/Hong Kong local shares from March 15 to 21, according to EPFR data. From February 2017, a total of $33.4 billion has flowed to Chinese stocks/Hong Kong local stock markets.

In march, a lot of money flowed into Africa and the Middle East, buying $3.2 billion in stocks and bonds. South Africa has become one of the key investors. By comparison, Latin America has seen net outflows for the second consecutive month, with investors pulling out $2.1 billion.

The march inflow was a notable shift from February. In February, the global market was convulsed by a sharp fall in U.S. stocks. In march, funds recovered somewhat, but they were still less than in the previous months. Inflows into emerging markets reached $42 billion in January 2018.