China Gloom Spurs Record $2 Billion Rush Into Foreign Stock ETFs
- Fervor continues despite high premiums, correction risks
- ETFs are a favored tool to invest abroad under capital control
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A record amount of Chinese money is flowing into overseas equities as despondent investors seek a way out of the sagging local stock market.
Inflows into 33 onshore exchange-traded funds that track foreign benchmarks excluding Hong Kong reached $2 billion in January. That’s the biggest monthly tally in Bloomberg data going back to late 2020. More than half of that poured into US stocks as the S&P 500 hit fresh highs, while another $204 million flocked to Japan.