According to the Emerging Portfolio Fund Research (EPFR), investors shift funds into money market funds in total at the end of April reached a record $1.1 trillion. In addition, managers of major investment funds actively transfer money to China from developed and other developing countries. In March, the Chinese share of securities in total investment portfolio of $2 trillion and reached a record 25%, while the previous year was 20%.Gradual recovery of China’s economy and the ongoing uncertainty in the developed markets led to a global rebalancing of stock market investment. In search of growing assets, investors increasingly shift funds in securities of Chinese companies, and seeking temporary shelter in money market funds (money market funds) that invest in short-term highly liquid government bonds and short-term certificates of Deposit of commercial banks. According to EPFR, in April, money market funds recorded inflows of $91.5 billion, thus the total amount of funds in such funds reached a record $1.1 trillion.In addition to money market funds, which are considered as means for temporary secure placement of funds to wait out the period of instability, and investors are looking for ways to make money. If in most developed and developing countries, local authorities only have started to gradually phase out quarantine measures or has not yet taken off in China already there is a revival of economic activity. It is not surprising that investors began actively to shifts in the Chinese securities from developed and other developing countries.A sharp inflow of funds into the Chinese paper is especially apparent when analyzing the dynamics of recent years: six years ago the share of Chinese papers in the total volume of these funds was 17%. Thus, the increase in the share from 17% to 20% occurred over five years, and from 20% to 25% in just one year. “We see that many foreign stock managers rethinking their strategies in the current environment, said in an interview with CNBC Director of EPFR according to the analysis of inflows and outflows of investments Todd Willits.— People are now trying to increase their funds in China”. Moreover, funds that spetsializiruyutsya on investing only in emerging markets, the share of investment in China even more — 34%, and for funds investing in Asia (excluding Japan),— 38%.Eugene Tail
