Chart of the day: China a magnet for foreign funds

PUBLISHED : Saturday, 30 August, 2014, 12:54am
UPDATED : Saturday, 30 August, 2014, 12:54am

Investors are more bullish on Chinese equities than at any time in the past five years, according to new analysis of fund flow data by HSBC Holdings. Industry statistics up to late August show mutual fund and foreign institutional investors have roughly doubled their weightings in the past three months, relative to neutral benchmark positions. That implies greater risk appetite for China than at any time since 2009. August inflows into Asia-Pacific equities in general remained strong. Foreign institutional investors committed about US$3 billion net in August, bringing the total for the year to date to US$36.7 billion. Mutual fund investors are more bullish still, having committed about US$8 billion over the past four weeks.