China drives Asian stock outflows

In recent weeks, Asia equity funds are moving out of China and India into developed-market funds, the Wall Street Journal reported. Citigroup reported that US$1.2 billion of Asia stock funds were outflowed, most from China and Greater China funds, the fifth-biggest amount in history. The country's growing stock market has led to concern from international
fund managers, who expect the bubble to burst soon. Korea, Singapore and Malaysia have had the most inflows during the past few weeks, and money is also flowing into developed-market funds, Citigroup said. Inflows to global equity funds since July 2006 total more than US$40
billion, with Asian funds at US$5.4 billion during the same period.