LONDON (Reuters) – Investors dumped U.S. and real estate stocks and bought Chinese stocks in the week to Wednesday, according to a Bank of America report on Friday citing data from EPFR. He said the inflow of funds into China was likely driven by Chinese public funds.
BofA’s weekly summary of inflows into and out of global markets showed $15.6 billion outflows from U.S. stocks, the most since September 2023, while inflows into China were a record $18.8 billion. became.
Beleaguered Chinese stocks rose this week ahead of the Lunar New Year holiday, snapping off a five-year low on a number of signals that authorities are increasingly determined to support the struggling market.
State-run fund Central Huijin Investment said on Tuesday it would expand the range of funds it buys and further expand its purchases in short-term but broad-based support.
Meanwhile, the S&P 500 continued to set new records this week even as investors tracked by the Fund Flow Report withdrew their money.
One market segment where investors were particularly depressed was real estate funds, which saw weekly outflows of $1.1 billion, the highest since May 2022, but BofA said this was due to the woes of U.S. regional banks. It is considered a thing.
Last week’s selloff in U.S. regional bank stocks sparked by New York Community Bancorp focused on the sector’s exposure to distressed commercial real estate.
Elsewhere, the report showed money market funds continued to hoard investors’ money, with cash equivalents seeing inflows of $40.1 billion and assets exceeding $6 trillion.
“Cash levels have not yet peaked,” BofA said.
(Reporting by Alan John; Editing by Lucy Raitano and Hugh Lawson)