Comments: Traders flooded to emerging market ETFs but could not avoid China

Source: Bloomberg

Author: LEDA Alvim

Fund managers poured into emerging market funds under the betting of the earliest interest rate cut for the Federal Reserve next month, but they avoided mainland China, because this second largest economy in the world made them uneasy.

As of the week of August 16, the $ 15.9 billion washares Anshuo MSCI Emerging Market (except in mainland China) ETF (code EMXC) attracted approximately $ 352 million.According to the data of Bloomberg's summary, EMXC is still the leader of ETF suction of ETF this year, with funds flowing more than $ 5 billion.

Emerging market assets have risen last week, and investors bet on the Federal Reserve to start reducing the cost of lending in September.Malcolm Dorson, a senior investment group manager of ETF (EMM) in mainland China ETF (NDIA) and Global X, said that this expectation has been transformed into a risk preference environment, which not only promotes the rise in stocks, but also pushes a special increase.Emerging markets.

Nevertheless, ETF investors are unwilling to invest in mainland China. Because of the daily flow of funds from the northbound of "Shanghai -Shenzhen -Shenzhen -Hong Kong Stocks", the concerns of the country's economic growth are also targeted at market emotions.

"News like this is constantly accumulated, and it has also begun to have an impact on whether it is necessary to decide whether there is a configuration in China," Dorson said. "China’ s recent economic data is also poor. We have not seen enoughStimulating measures to adjust the momentum, but emerging market countries outside China may seem to have just passed an important turning point. "

On the other hand, Taiwan has always been the beneficiary of artificial intelligence thermal heat, because investors hope to have TSMC.Thanks to the market's pursuit of science and technology sectors and the growing growth of artificial intelligence, it has risen 66%so far this year.In the past week, Taiwan's funds have inflows the largest, reaching US $ 143 million, of which EMXC has led the rise.

Bloomberg's summary data shows that ETF, an emerging market for emerging markets listed in the United States on the week of August 16, and funds of funds for specific countries attracted $ 19.6 million.The previous week they encountered $ 2.7 billion in capital outflows.The total amount of capital inflows so far is US $ 2.98 billion.