Emerging market stocks and bonds suffer $9.8bn outflows in March as investors pull back
Foreign investors are concerned over geopolitical events and inflationary conditions, IIF says Emerging market (EM) stocks and bonds recorded an outflow of $9.8 billion in March, the first outflow month in a year, as concerns over geopolitical events , inflationary pressures and economic recovery from the pandemic dampened the outlook for investors. That compares with an inflow of about $17.6bn in February and roughly $1.1bn of flows in January , according to the Institute of International Finance (IIF). Foreign investment in EM securities “suffered” throughout the first quarter of the year, with the outflow in March driven by China, the IIF said in its monthly Capital Flows Tracker report. Outflows were recorded from both bonds ($11.2bn) and equities ($6.3bn) in China, while non-China EM debt attracted $8.2bn. One constant through all the ups and downs in capital flows dynamics of recent years has been China, which saw steady inflows as foreign investors built their expos...