China Equity Flows Increase As Market Sentiment Changes

• China equities saw another day of inflows with 4.2b yuan entering via the northbound connect. The onshore market did underperform HK equities however many equity indices have now entered technical bull markets as market sentiment changes. Equity flow momentum is also positive with the 5-day average 3.38b now sitting above the 20-day average at 3.02b yuan.
• South Korean equities marked the 4 out of the past 5 day of outflows, with the majority of outflows coming from the tech space. Equity markets are flat over the same period. The short term momentum is negative with the 5-day average now at -$131m, while the 20-day average is $135m down from $252m the prior 20 days.
• Taiwan equities saw inflows on Tuesday with $178m entering the market. Equities prices largely seemed to follow HK prices higher with semiconductor names the best performing. Short-term flow momentum is growing with the 5-day average now at $419m, well above the 20-day average at $306m
• Thailand equities continue to see outflows with the past 10 of 12 days seeing negative flows, with the SET down 1.63% over that time. The 5-day average now sits at -$9.25m, while the 20-day average is at -$8.85m.
• Philippines has marked the first day of outflows since Jan 30. Trade Data was released on Tuesday showing exports rising 9.1% from 7.4% prior, with the trade deficit now -$4.2b vs $4.7b expected.

Table 1: EM Asia Equity Flows