© Reuters Citi says current China inventory inflows ‘completely pushed by Chinese traders’
The current massive inflows into China fairness funds have been domestically pushed, based on analysts at Citi in a analysis be aware Wednesday.
Analysts advised shoppers that the funding financial institution’s newest fund movement report confirmed massive inflows to China fairness funds, with this week’s fairness markets positioning exhibiting a flip to bullish repositioning in China futures.
Citi lately reported a weekly influx to China fairness funds of $12.6 billion, representing the biggest ETF influx since 2015. Analysts stated this will likely have led ETF buying and selling to be round 10% of the day by day turnover of CSI 300 shares for a few days.
“Drilling down into the fund flow data, recent flows have been entirely driven by Chinese investors into domestic ETFs while ‘international’ ETFs continue to have outflows and the futures net positioning remains the most bearish across markets,” wrote analysts.
“Rather than seeing the large inflows as a potential change in general investor sentiment on China, we see this as a domestic market anomaly, perhaps state-directed through purchases by units of the sovereign wealth funds,” they defined.
