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Investors withdraw billions from EM equities

According to the data from EPFR Global, investors withdrew $3.7 billion in the last week ending Wednesday and Asia accounted for the majority of that. Asia excluding Japan saw a net redemption of $2.36 billion, the biggest in 15 months. Outflow from China was $667 million, which is the highest since May.

Donald Trump’ election as the US president has triggered considerable uncertainties with regard to China as the next President accused the second largest economy of stealing the manufacturing jobs from the United States using currency manipulation and unfair trade means and unfair subsidies. There is a genuine concern in the market that Mr. trump might trigger a trade war with China, which is not likely to bear well for the communist country.

However, Mr. Trump’s win has borne well for the US equity funds, which have seen inflows of money into equities in the tune of $65 billion. However, last week, the US equity funds snapped their six weeks of consecutive inflows with $667 million outflows.

The US bond funds saw an outflow of $3 billion.

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