Data released by the Institute of International Finance today, Monday, showed that foreign investors poured almost $10 billion into emerging market portfolios in April, and that the lion’s share of that went to Asia, despite rising net capital outflows in China.
According to the data, net inflows rose for the fourth month in a row, the longest period in more than a year, although the volume of inflows was much lower than in the first two months of this year.
Net inflows in April were $7.7 billion in emerging market bonds and $2.1 billion in equities. This brings the total to $9.8 billion, up from $9.1 billion in March and $7.6 billion outflow in April 2022.
Flows to Asian markets were the highest at $5.2 billion, even as China registered an outflow of $1 billion in bonds and $3.8 billion in equities.
“Chinese equities suffered an outflow in April and the positive effect of the (market) opening disappeared,” Jonathan Fortune, economist at the Institute of International Finance, said in a statement.
The data showed that Chinese bonds experienced outflows for 8 of the last 12 months, while equities experienced monthly outflows after 5 months of inflows.
Turkey, which holds elections on Sunday, has seen its fifth consecutive month of capital outflows, according to preliminary data from the Institute of International Finance, while bond market inflows were positive for the third month in a row.
