Five charts to start your day

Less money is flowing into Chinese equities than other Asian emerging markets from foreign investors. It’s the first time this happened in six years.

This interesting chart from Goldman Sachs reveals this trend. It was printed in the Financial Times this morning, covered by journalists Hudson Lockett and Mercedes Ruehl: https://www.ft.com/content/8a3764af-e7f2-45a5-bcd4-83da598987c0

1. Less money is flowing into China, and more is being invested in its regional rivals like India

Some takeaways:

• China’s post lockdown rebound has faded, and growth in the economy is slowing, making it a less attractive destination for investment.

• China still remains a highly restricted economy with its data security law passed in 2021 and recent anti-espionage legislation passed in April.

• According to the Bank of America’s latest fund manager survey, 86% of fund managers expect Asia-Pacific markets outside Japan to rise over the next 12 months. There appears to be a continued perception that regional equities, excluding China, are undervalued, which is attracting these inflows.

• Investment appears to be shifting to other markets, including India.