TSX higher on employment data
Investing.com - Foreign-domiciled long-only fund flows into Chinese equities moderated to $0.9 billion in August from $2.7 billion in July, according to Morgan Stanley data released Thursday.
Passive funds continued to attract capital but at a reduced pace, bringing in $1.4 billion compared to $3.9 billion in July, with U.S. passive funds remaining the primary driver. Active funds recorded small outflows of $0.5 billion, marking the lowest outflow level since mid-2023.
Year-to-date cumulative foreign passive inflows reached $13 billion as of August 31, already exceeding the 2024 full-year level of $7 billion. Active fund outflows have totaled $11 billion year-to-date, showing improvement compared to the $24 billion outflows recorded in 2024. The combined effect has produced a $1 billion net inflow year-to-date, a notable reversal from the $17 billion outflow seen in 2024.
Global and emerging market funds have reduced their underweight positions in China to 1.3 percentage points and 2.5 percentage points respectively, down from 1.4 and 3.2 percentage points in the previous month. Asia ex-Japan funds have shifted from a 0.3 percentage point underweight to a 0.8 percentage point overweight position.
By sector, active fund managers increased their exposure most quarter-to-date in Capital Goods, Media & Entertainment, and Transportation, while reducing positions in Consumer Services. At the company level, CATL, Pop Mart, and Zijin Mining saw the largest additions, while Meituan, PetroChina and CCB experienced the most significant reductions quarter-to-date.
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