Foreigners add $19.2 billion to EM portfolios in November, IIF says

By Rodrigo Campos

(Reuters) -International traders added a web $19.2 billion to their rising market portfolio holdings in November, with promoting of shares greater than offset by a unbroken circulation of money into EM debt, information from a commerce group confirmed on Friday.

Inventory portfolios noticed an $11.1 billion outflow whereas bonds attracted $30.4 billion final month, information from the Institute of Worldwide finance confirmed.

The November web influx of $19.2 billion compares with a $0.3 billion web outflow in October and an $38 billion influx in November 2023.

Chinese language equities shed $5.8 billion whereas the nation’s bonds noticed an outflow of $7.5 billion, underscoring investor issues over geopolitical tensions together with a gap of extra fronts within the anticipated commerce warfare with the incoming U.S. administration.

Markets reacted to President-elect Donald Trump’s U.S. election win and the following rally within the greenback, which has traditionally weighed on rising market property.

“This sustained pessimism surrounding Chinese language equities is rooted in a confluence of things, together with regulatory issues, slowing financial development, and chronic geopolitical tensions,” IIF economist Jonathan Fortun stated in a press release.

He stated the resilience of EM debt markets outdoors China was underpinned by the continued quest for yield and the relative stability of fixed-income property in comparison with shares.

All areas noticed web inflows in November with Latin America main the pack at $6.5 billion, whereas EM Europe attracted $4.8 billion, Asia $4.6 billion, and Africa and the Center East $3.4 billion.