Chinese stocks, emerging market debt see large inflows in February, says IIF

Rodrigo Campos

Thu, Mar 13, 2025, 8:08 AM 1 min read

By Rodrigo Campos

NEW YORK (Reuters) - Foreigners added astir $16 cardinal to their emerging marketplace portfolios successful February, with investors loading up connected Chinese stocks arsenic good arsenic indebtedness crossed processing economies, a study from a concern commercialized radical said connected Thursday.

Chinese stocks sucked successful $11.2 billion, but selling elsewhere meant emerging marketplace equity portfolios saw a nett outflow of $2.1 cardinal past month. The representation was the reverse successful fixed income, wherever Chinese bonds posted a $15.1 cardinal outflow though emerging marketplace indebtedness elsewhere raked successful $33.2 billion.

The wide $15.9 cardinal nett inflow to emerging marketplace portfolios past period compares with $21.2 cardinal successful January and $27.8 cardinal successful February 2024 according to information from the Institute of International Finance (IIF).

The February inflow to Chinese equities was the largest for immoderate period since September and the 2nd largest successful implicit 2 years.

"The 'animal spirits' are being awakened with a designation of the advances that Chinese companies made successful divers areas specified arsenic AI and electrical vehicles," said Guilherme Valle, founding spouse and portfolio manager astatine ABS Global Investments successful an email exchange.

"The operation of innovative concern models and debased valuations volition proceed to supply a favorable backdrop for Chinese equities," helium said.

(Reporting by Rodrigo Campos; graphics by Marc Jones; editing by Chizu Nomiyama)