China ETFs register significant net outflows in June: SGX

AFTER seeing 25 straight months of inflows, China equities exchange-traded funds (ETFs) bucked the trend in June with month-to-date net outflows of S$6 million, recent Singapore Exchange (SGX) data show. China fixed income ETFs also saw significant net outflows of S$78 million, the highest in over a year.

Conversely, Singapore equities ETFs saw month-to-date inflows of S$11 million in June, a turnaround from the previous 5 months of net outflows. Singapore fixed income ETFs saw inflows of S$1.5 million in June.

Excluding Singapore and China, Asia fixed income ETFs narrowed in June month-to-date, registering net outflows of S$1 million, the lowest since it began recording a net outflow of S$102.8 million in March 2022.

SGX observed that global ETFs attracted a net inflow of S$4.8 billion since May 2020, the highest contributing asset classes being fixed income ETFs at S$3.7 billion, equities ETFs excluding real estate investment trusts (Reits) at S$978.6 million and Reit ETFs at S$305.9 million. Commodity ETFs and leveraged and inverse products, conversely, saw outflows of S$161.6 million and S$1.5 million respectively.

“We have seen a record high in net inflows for Reit ETFs in June, following single-day inflow of S$50 million for NikkoAM Asia Ex Japan Reit ETF,” said SGX market strategist Geoff Howie in a statement to The Business Times on Friday (Jun 17).