Emerging market ETFs see eight consecutive weeks of inflows, with China leading the capital surge: Invesco CQQQ posts all-time high single-day inflow
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Data shows that the Invesco China Technology ETF (code CQQQ) once again became the top fund in terms of capital inflows among U.S.-listed ETFs investing in Chinese assets last week.
According to data compiled by the media, the fund recorded a weekly inflow of $292 million, attracting net buying for the sixth consecutive week, marking the longest streak of continuous inflows since the end of March.
On Monday alone, the fund attracted $160 million in a single day, setting a new historical high. On that day, bolstered by policy expectations, both onshore and Hong Kong Chinese stock markets rose. The mainland China market will be closed for National Day holidays from October 1st to 8th.
More broadly, U.S.-listed ETFs investing in emerging market stocks and bonds achieved their eighth consecutive week of net inflows in the week ending October 3, with a total amount of $1.89 billion, surpassing the previous week's $1.33 billion.
Since the beginning of this year, related funds have attracted a cumulative $26.2 billion. Among them, equity ETFs saw inflows of $1.44 billion, bond ETFs saw $446 million, and the total scale of emerging market ETFs rose from $441 billion to $454.3 billion.
Supported by this, the MSCI Emerging Markets Index rose 3.6% for the week, closing at 1373.89 points, the highest level since June 2021. Mainland China and Hong Kong ranked first in terms of capital inflows, totaling $695 million; in contrast, the Argentine market recorded a net outflow of around $34 million.
A previous article by Wallstreetcn mentioned that, according to HSBC's emerging markets survey, investor optimism is rising, with China becoming the top choice for equity investment. The HSBC report pointed out that investors were already optimistic about the prospects for emerging market assets, and the latest survey showed this optimism has strengthened.
The market generally believes that emerging market equities will rise in the next three months. They also expect emerging market stocks to outperform those in developed markets, with China becoming the preferred destination for equity investment.
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