Emerging markets funds have been hit by the biggest level of outflows in seven years, as issues including MSCI stalling on adding Chinese A-shares to its benchmarks weighed on sentiment.
According to the FT, data from funds tracker EPFR suggests $9.3bn left emerging markets funds in the week to Thursday; the highest level since 2008. The vast majority, $7.1bn, was pulled from funds investing in Chinese equities after weeks of strong inflows, while GEM funds lost $829m and Latin American funds fell $442m. Analysts at ANZ said this week's outflow from China funds was probably due to increased volatility in the domestic share markets, with some fearing a bubble may be developing, but the MSCI decision may also have played a part. Late last year, Chinese equities bec...
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