Source: Bloomberg

Investors at the US Exchange Trading Fund (ETF) have begun to favor emerging market stocks again, but it does not include China.

Ishares MSCI Emerging Market (excluding China) ETF (Code EMXC) invests in stocks in the entire emerging market except China.Last week the fund received US $ 148 million in capital inflows.This is the fund's net inflow of funds for the fifth consecutive week, and the flow of inflows has created the largest five months.TSMC, Indian Shinshi Industrial Corporation and Tamsui River Valley are all among the largest holding stocks of the fund.

At the same time, ETF, which specializes in Chinese stocks, failed to get new capital inflows again last week.Although the decline in valuation and growth prospects is attracting some investors to return to emerging markets, the momentum of the Chinese economic recovery is not as unsatisfactory, and the intensified situation of geopolitical tensions and regulatory risks has weakened investors' enthusiasm for investment in Chinese stocks.Since the end of January, the MSCI China Index has undergone MSCI without China's emerging market index, and the ratio of the two is at the lowest level since early December.

"The challenges faced by the Chinese economy are huge, which has a serious impact on international capital flow and domestic capital allocation. We believe that China is facing increasing risk of economic stagnation similar to Japan," LOOMIS Sayles & Co.Fund manager Ashish Chugh said in an email interview last Friday."Too huge real estate industry and local government debt are a major risk of long -term growth and solvency."

In the past seven weeks, EMXC has risen for six weeks, and has never experienced a single weekly outflow since October 7.Even during the selling of emerging markets in February and April, investors were still buying the fund.The 21%resources of this full stock fund are allocated in Taiwan's stocks, 20%are allocated in Indian stocks, and South Korea and Brazil's stocks are 17%and 7.4%, respectively.

In contrast, ISHARES Anshuo MSCI China ETF has never experienced a single -day capital inflow since January 30, because the optimistic emotions of China's unblocking in the restrictions of epidemic prevention have dissipated at the beginning of the year.