Capital flows: the EM push-me-pull-you – beyondbrics - Blogs - FT.com:
"Some apparently contradictory data from the Institute of International Finance on Thursday: it reckons total net private capital flows to emerging markets have dropped sharply in the first half of 2014, while flows from foreign investors to EM bonds and equities are ticking sharply upwards.
What is going on?
One answer is the relative weight of push and pull factors. Real money investors, flush with QE cash, are buying more and more EM portfolio assets. But overall flows – including bank lending, FDI and so on – are being pushed down by two factors. Flows to China are seen slowing as the government moves to discourage short-term inflows in a bid to keep the renminbi from appreciating and – more significantly – flows to Russia are seen collapsing as cross-border bank lending and bond issuance grind to a halt because of the crisis in Ukraine."
'via Blog this'
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