China beats India in November FII inflows: HSBC

China mops up $2.3 bn; India at $1.4 bn, Thailand in third spot

Foreign institutional investors  (FIIs) warmed to Asian equities in November as the region recorded net inflows of $5.3 billion, of which India attracted $1.4 billion, said a report by HSBC.

According to the global financial services major, after two consecutive months of sell-offs, FIIs have warmed up to Asian equities and all markets have received positive flows in November.

Among Asian economies, China regained the top position as the “most-loved” market, pushing India down to second position in the region, while Thailand was placed at the third spot, it said.

Till November 24, the region recorded net inflows of $5.3 million and though all markets received positive flows, Taiwan and India received the major chunk of funds with inflows of $2.3 billion and $1.4 billion, respectively.
 

So far this year, the total FII inflows to Asian equities stood at $38.7 billion.

"We are overweight on Indonesia, China and India; and underweight on Hong Kong, Thailand, Malaysia and Philippines," HSBC said in a research note.

A sector-wise analysis showed that funds had increased their holdings in industrials, materials and consumer discretionary, while they further cut exposure in consumer staples and utilities.

Funds were most underweight on telecom and financial sectors, the report said.

Meanwhile, mutual fund investors also looked bullish as they bought Asian equities worth $1.68 billion in the past four weeks ended November 19, according to funds tracking company EPFR Global.