JPM: Retail Bond Fund Inflows Concentrated In China Local FX

J.P.Morgan note for the week ending 14 July "EM bond flows were +$668mn (+0.12% of weekly AUM, prev. +$1.3bn); EM equity flows were +$755mn (+0.05% of weekly AUM, prev. -$240mn).

• "YTD flows to EM bonds and equities stand at +$49.3bn and +$91.9bn, respectively."
• For EM bond funds "overall inflows slowed down substantially this week as net flows into hard currency bond funds were close to flat (+$73mn), whereas local currency bond fund inflows increased (+$596mn). Inflows were concentrated in ETFs (+$736mn) as non-ETFs posted small outflows (-$68mn). Within local currency bond funds, inflows were concentrated into China-related bond funds (+$881mn) as EM ex-China bond funds had outflows for the second week in a row (-$285mn)."
• For EM equity funds "overall net flows flipped back to inflows (+$755mn, prev. -$240mn). Inflows were concentrated into ETFs (+$1.3bn) as non-ETFs posted outflows for the second week in a row (-$585mn). Within regional equity funds, Asia ex-Japan reverted back to inflows (+$168mn, prev. -$579mn); while both EMEA and Latam had net outflows (-$234mn and -$299mn, respectively)."
• In terms of non-resident EM portfolio flows "EM local bonds had flat flows (-$8mn, prev. -$191mn), as small inflows into South Africa (+$64mn), India (+$16mn), and Indonesia (+$33mn) were offset by outflows in Hungary (-$121mn). Non-resident net outflows from EM equities were large once again (-$2.6bn, prev. -$2.6bn), led by Korea (-$1.6bn), South Africa (-$755mn) and India (-$441mn) which were partly offset by inflows into Taiwan (+$469mn)."