IIF chief economist Robin Brooks said that flows have since cooled.
“Flows have pulled back, including into China equities where we had seen a pick up in Q4 and around the Fed meeting,” Brooks told Reuters. “You can see that equity flows in particular have pulled back after a big surge post-FOMC on Jan. 30, indicating more caution as the final trade negotiations take shape.”
Most of the flows may be attributed to China where foreign capital flows into the market h ave jumped in the first few weeks of 2019 in response to bets on stimulus measures out of Beijing and the awaited announcement of a potential increase in China A-shares exposures to MSCI’s benchmark indices.
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