Goldman Sachs(US:GS) Goldman Sachs·2025-03-25 02:20Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies Core Insights - Hedge Funds have reversed 17% of year-to-date buying in China, indicating a shift in sentiment towards Chinese equities [8][9] - Indonesia has experienced significant foreign outflows, particularly from the banking sector, with approximately US$2 billion in outflows year-to-date [26][23] - Asia and Emerging Market mutual funds are continuing to reduce their overweight positions in Indonesia [28][23] Summary by Relevant Sections Foreign Institutional Investor (FII) Flows - EM Asia excluding China saw FII selling of US$0.5 billion week-over-week, with Taiwan leading the outflows at US$1.1 billion [33] - Inflows were observed in Korea, which saw US$1.7 billion in FII inflows this week [33] - Year-to-date, Indonesia has seen foreign outflows of about US$2 billion, primarily driven by selling in banks [26][23] China Flows and Positioning - Hedge Funds have reversed 17% of their year-to-date risk-on buying in China, leading to marginal net selling in Chinese equities for the month-to-date period [8][9] - China's allocation in mutual funds globally rose by 60 basis points in February, ending at 6.5%, which is in the 12th percentile over the past ten years [17][22] - Southbound buying has moderated this week, with a total of US$3 billion in net buying year-to-date [8][17] Global Equity Mutual Fund Flows - Global equity mutual funds saw inflows of US$43 billion week-over-week, contrasting with US$3 billion in outflows the previous week [7] - Developed Markets (DM) funds, particularly in the US, Europe, and Japan, experienced significant inflows [7] Domestic Institutional Investor (DII) Flows - Asia markets saw US$2.4 billion in DII inflows this week, led by India with US$0.9 billion [45] - Non-Asia EM markets experienced US$0.2 billion in DII outflows, primarily from Brazil [45]