EM Funds Start To See Some Inflows After Rout

Despite emerging market funds attracting investments over the past week, analysts at HSBC suggest a cautious approach given slow growth and high debt in EM.

Bertrand Delgado and team at HSBC in their October 16, 2015 research report titled “GEMs funds flows” point out that next week, investors will pay close attention to China’s Q3 GDP as well as investment, industrial production and retail sales for any clues on growth stabilization by the end of Q3 2015.

DM and EM funds attracted investments last week

Tracking fund flows, Delgado et al. point out that over the past week, both EM and DM funds managed to attract investments with EM equity and bond funds ending 13 and 11 consecutive weeks of losses,...