Foreign buying in Asian emerging equity markets outside China has surpassed inflows to the region’s largest economy for the first time in six years, as investor optimism about Chinese growth wanes, reports the Financial Times. Over the past 12 months net foreign inflows to emerging markets in Asia “ex-China” were more than $41 billion, outstripping net inflows of about $33 billion into mainland Chinese equities via Hong Kong’s stock connect trading scheme, according to data compiled by Goldman Sachs.
The equivalent figures for the previous 12 months were net outflows from emerging markets of $76.6 billion and net inflows into China of $42.8 billion.
The shift reflects the disappointing reality of China’s rebound from harsh COVID-19 restrictions, and highlights how economies elsewhere in the region are benefiting from shifting supply chains and strong US semiconductor demand.
