In just one week, between May 8-15, investors withdrew some $430 mio from funds oriented towards Russian assets, reports the Banki.ru publication with a reference to the Emerging Portfolio Fund Research (EPFR).
In May, $470 mio left the Russian stock market. Funds that invested in Russian securities lost more than others. The outflow in this segment reached $290 mio against $70 mio a week before. Analysts believe this was caused not by the purely Russian problems, but the general negative sentiments of investors for developing markets. They are frightened by the ongoing trade conflict between the U.S. and China.
The Chinese party warned that it might stop negotiations with the U.S. because of U.S. President Donald Trump’s threats. The president raised tariffs on Chinese exports to 25% from 10%. As a result, developing market funds lost $2.8 bln in just a week. Interestingly, the Chinese market itself did not suffer much: the inflow in the country’s funds was $2.6 bln.