Emerging markets suffered an influx of $9.8 billion in March, the first in 12 months

 

 

Emerging market (EM) debt and equities suffered an outflow of $9.8 billion from foreign portfolio investors in March 2022. This was the first net inflow month since March 2021, according to the Institute of International Finance (IIF). “We see investors have a higher sensitivity to risk with growing concern about geopolitical events, tightening monetary conditions, rising inflation, and concerns that many economies will not recover quickly enough from the pandemic. Overall, the first quarter of the year saw investors become more selective,” said the Institute of Finance. International.

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China’s debt and equity market accounted for the bulk of outflows, while inflows to other emerging markets remained positive. Chinese bonds saw $11.2 billion in outflows and equities another $6.3 billion. Debt originating outside China attracted $8.2 billion and equities saw marginal outflows of $400 million. This has been described by the Institute of International Finance as “unprecedented dynamism” referring to market turnover.

 

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