Overseas investors continued to cut holdings in Chinese bonds in June but added positions in equities, the Institute of International Finance said.
Chinese bonds recorded $2.5 billion of outflows last month, compared with $9.1 billion of inflows in other EM, IIF estimated, marking the fifth straight month of foreign outflows from China’s bond market.
China’s stock market saw $9.1 billion of foreign inflows, compared with outflows of $19.6 billion in other EM markets, according to the IIF.
“For the coming months, several factors will influence flows dynamics, among these the timing of inflation peaking and the outlook for the Chinese economy will be in focus,” the IIF said.