India, China see fund outflow despite best returns
India-dedicated funds have seen the 2nd highest outflow after China so far in 2007, although in '06 the two recorded the biggest inflows in the Asia-Pacific region.
By PTI |
NEW DELHI: Indian and Chinese stocks may be yielding the best returns to investors, but foreign funds are pulling out money from these markets to park them in Taiwan, South Korea and Thailand.
India-dedicated funds have seen the second highest outflow after China so far in 2007 through July 18, although the two had in the same period last year recorded the biggest inflows in the Asia-Pacific region, excluding Japan.
According to data compiled by EPFR, an emerging market fund flow tracker, and global brokerage house Citigroup, India funds have seen an outflow of $1.7 billion as of last week, while China funds have seen an outflow of $3.07 billion.
In the year-ago period, India funds saw fresh inflow of $1.26 billion, while that for China stood at $3.6 billion.
Incidentally, Citigroup expects Indian market to give the second highest return on equity in 2007 of 20.8 per cent, after 25.2 per cent in Indonesia in the Asia-Pacific region.
Citigroup expects fifth highest return of 16.2 per cent in China this year.
Indonesia has also suffered an exodus of foreign flows worth $20.3 million so far this year, as against an inflow of USD 23.3 million a year ago.
This is despite India-specific funds recording an inflow of USD 75 million last week, which has doubled from the previous week.
India-dedicated funds have seen the second highest outflow after China so far in 2007 through July 18, although the two had in the same period last year recorded the biggest inflows in the Asia-Pacific region, excluding Japan.
According to data compiled by EPFR, an emerging market fund flow tracker, and global brokerage house Citigroup, India funds have seen an outflow of $1.7 billion as of last week, while China funds have seen an outflow of $3.07 billion.
In the year-ago period, India funds saw fresh inflow of $1.26 billion, while that for China stood at $3.6 billion.
Incidentally, Citigroup expects Indian market to give the second highest return on equity in 2007 of 20.8 per cent, after 25.2 per cent in Indonesia in the Asia-Pacific region.
Citigroup expects fifth highest return of 16.2 per cent in China this year.
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Indonesia has also suffered an exodus of foreign flows worth $20.3 million so far this year, as against an inflow of USD 23.3 million a year ago.
This is despite India-specific funds recording an inflow of USD 75 million last week, which has doubled from the previous week.
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