EM portfolios funnel near $45 billion in August but cracks are showing, IIF says

By Rodrigo Campos

NEW YORK (Reuters) -Investors plowed nearly $45 billion into their emerging market equities and debt portfolios in August, the most in nearly a year, but a large outflow from EM stocks outside of China pointed to a change of sentiment among investors, according to a report from a banking trade group.

The $44.8 billion net inflow for last month compares with $38.1 billion in July, which was sharply revised lower from $55.5 billion, and compares with $28.2 billion in August 2024, according to data from the Institute of International Finance.

Chinese debt and stocks took in over $39 billion net last month, while ex-China debt attracted $13.2 billion. Stocks outside of China saw a $7.4 billion outflow after three months of inflows.

The shift “marks the weakest month for E