Chinese bond funds attract US$17bn in net new money - Asia FlowWatch - March 2016 Results

Asia FlowWatch - March 2016 Results

Highlights:

In March 2016, long-term funds in Asia took in US$25 billion in net flows, with China leading the way collecting US$20 billion, followed by Japan gathering US$6 billion, while India witnessed the most outflows at US$4 billion.

Bond funds, mostly Bond CNY products in China, garnered US$17 billion in net new money, and Chinese guaranteed products added another US$4 billion during March; in comparison, Mixed Flexible vehicles in China experienced over US$4 billion in net redemptions. In addition, Chinese money market products saw over US$40 billion in net outflows for the month.

Overall during Q1, Chinese Investors switched to bond and guaranteed products amid market volatility and falling money market returns.

At the product level, Japan's Nomura Topix Exchange Traded Fund raised US$1.5 billion in net new money, and ICBCCS 7 Days Cash-Management Fund, a short-term domestic bond product in China, attracted US$1.1 billion for the month.

Further details can be found in this 60 page quantitative summary of the region.