The Zhitong Finance App learned that in the week ending October 28, global equity funds received a large amount of capital inflows, but the inflow rate has slowed down. According to data from Lipper, a subsidiary of the London Stock Exchange Group (LSEG), investors made net purchases of US$10.19 billion in global equity funds that week, achieving net purchases for the sixth consecutive week, but the capital inflow was lower than the previous week's US$25.06 billion.
As artificial intelligence (AI) and chip stocks rebounded, South Korea's SK Hynix led the way after announcing record quarterly profits, and investors' demand for technology funds and Asian funds rose accordingly. Despite this week's data showing that the AI giants Alphabet (GOOGL.US), Microsoft (MSFT.US), and Amazon (AMZN.US) are about to release financial reports, the market is still somewhat cautious about AI transactions.
From a regional perspective, Asian equity funds led capital inflows and attracted 9.9 billion US dollars in net purchases, down from 11.58 billion US dollars the previous week. Investors invested $4.54 billion in European funds but had a net withdrawal of $6.65 billion from US equity funds.
Looking at industry funds, investors allocated 5.5 billion US dollars to the technology industry, up from 5.07 billion US dollars the previous week. Industrial funds also attracted $408 million in capital inflows, while utility funds saw outflows of $928 million.
Meanwhile, the net inflow of global bond funds fell to US$2.72 billion, the lowest level in six weeks. Specifically, global short-term bond funds experienced an outflow of US$2.67 billion in capital during the week, the first time since April 15 that a net redemption was recorded. Investors bought a $2.62 billion government bond fund and a $1.01 billion corporate bond fund respectively.
Money market funds recorded a net outflow of $38.5 billion, reversing the previous week's inflow of $1,695 billion. On the commodities side, investors withdrew $1.51 billion from gold and other precious metals funds, recording a net redemption for the second week out of the past seven weeks. The energy fund, however, attracted $177 million in capital inflows.
In terms of emerging markets, data covering 29,184 emerging market funds showed that equity funds were favored by investors for the third week in a row, recording a net inflow of US$2.2 billion. However, the bond fund had a net redemption of US$1.85 billion, the biggest weekly outflow of capital since September 30.