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Global money managers flock to China stocks despite strains

Global money managers flock to China stocks despite strains

A woman walks by an electronic display showing the Shenzhen and Hang Seng stock indexes, in Shanghai, China, September 24, 2021. REUTERS/Aly Song

LONDON : Global money managers have pumped a combined US$13.3 billion into Chinese equities funds over the past five weeks, data shows, despite the concerns over property giant China Evergrande's future and rising regulatory pressure from Beijing.

Figures from financial flow tracker EPFR showed Emerging Markets Equity Funds have posted a collective net inflow of US$13.7 billion over the period, with US$13.3 billion going into China.

"The recent flows to China Equity Funds are driven, in part, by expectations of greater domestic support for Chinese equity markets," EPFR said.

The figures did not break down which sectors the money had flowed into but the firm said: "With the government determined to squash speculative excesses and the misallocation – as it sees it – of capital, it will be harder for Chinese investors to earn large returns from real estate, wealth management products or cryptocurrencies."

"That leaves domestic stocks as one of their best alternatives."

(Reporting by Marc Jones; Editing by Alison Williams)

Source: Reuters

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