Foreign investment in emerging markets outside China comes to 'abrupt standstill'

China takes majority of foreign inflows

clock • 1 min read
Emerging market securities attracted $16.8bn in December
Image:

Emerging market securities attracted $16.8bn in December

Foreign investment in emerging market stocks and bonds outside China has come to an “abrupt standstill” due to fears that many economies will not recover from the pandemic this year, according to a report by the Institute of International Finance.

In its latest capital flows tracker, the organisation estimates that emerging market securities attracted around $16.8bn in December 2021, but IIF believes the outlook is worsened by the Omicron variant and expectations of a stronger dollar and higher US interest rates. Podcast: 2022 outlook on Emerging Markets Jonathan Fortun, economist at the IIF, said: "On the other hand, we see flows into China sustaining the overall picture. The last quarter of the year has seen investors pumping money, particularly into China equities. This China and non-China EM split is rooted on the growth ou...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

Industry Voice: T. Rowe Price's 2022 Midyear Market Outlook summary

Industry Voice: T. Rowe Price's 2022 Midyear Market Outlook summary

Transitioning to a new paradigm

Ritu Vohora, Investment Specialist, Capital Markets at T. Rowe Price
clock 23 June 2022 • 2 min read
Industry Voice: Green bonds - a powerful way to take climate action

Industry Voice: Green bonds - a powerful way to take climate action

Did you know that investing in green bonds is one of the most powerful ways to make a climate-positive impact ? Learn why green bond proceeds are putting the planet first.

Amundi ETF
clock 23 June 2022 • 8 min read
Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Trustpilot