China’s Re-opening Boosts Emerging Market Inflows
(CTN NEWS) – BEIJING – According to statistics released on Friday by BofA Global Research, investors poured a record $12.7 billion into emerging-market debt and equities funds in the week before Wednesday in response to China’s loosening of its COVID-19 activity limitations.
Many various asset classes, from commodities and mining stocks to currencies and equities markets in well-known tourist locations, have benefited from the abrupt change in Chinese policy.
Before the Lunar New Year holiday, the benchmark for Hong Kong‘s stocks, the Hang Seng Index (.HSI), finished on Friday at a more than six-month high.
The.CSI300 index of Chinese onshore blue chips entered the break at a five-month high.
READ MORE: Economic Growth In China Falls To 3%, But Slowly Improves
According to the BofA statistics, there were weekly inflows of $14.4 billion into bond funds, $7.5 billion into equity funds, $0.6 billion into cash, and $0.6 billion out of gold.
After almost a year, European stocks had their first weekly inflow. The first inflows to European stock funds in 49 weeks, according to BofA, totaled $0.2 billion.
Gorman’s 2022 salary from Morgan Stanley is reduced to $31.5 million. China’s reopening and the recent drop in gas costs have benefited Europe.
Because of the influx of capital into emerging markets, BofA’s “Bull & Bear indicator” is at 3.5, a 10-month high.
The note also notes that despite the recent optimism, markets are still dealing with several significant uncertainties.
Including the possibility of an economic “hard landing,” political unrest in the United States related to its debt ceiling, and central banks’ continued aggressive interest rate hikes.
“We are in the most challenging stage of the investment cycle: tightening is coming to an end, but easing is still a long way off.
Inflation is finished, but the recession hasn’t started; and China is opening up vs. the US recession.
It’s understandable why Wall Street narratives are evolving more quickly than a TikTok video, “It read.
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