Last week’s equity flows story was all about emerging markets and, more to the point, China.

This week, US-focused funds took the baton, picking up the slack as EM shares saw net redemptions.

On the heels of a record influx, emerging market funds saw more than $4 billion hit the exits. It was the largest outflow since October of 2023, when US rates peaked for the cycle.

The net outflow from developing-nation equities was the first since late May.

If you’re curious as to whether some that was profit-taking in Chinese shares, the answer appears to be “yes.” According to EPFR’s data, China-focused funds saw their largest outflow in at least seven years over the latest weekly reporting period. The $4.1 billion redemption took a (small) bite out of the prior week’s mammoth $39 billion inflow.

I’ve repeatedly suggested (where “suggested” is not investment advice) that anyone who rode the China rally late last month and early in October might consider locking in some of their gains before the Party bungles the stimulus rollout. At least some folks did just that.

Recall that the “smart” money bailed on Chinese shares following the NDRC presser last week. I don’t know what hedge funds did thereafter, but suffice to say some profits were booked.

Overall, global equities took in more than $21 billion over the last week. Given the outflows noted above, it won’t come as a surprise that inflows to US shares were to thank.

After a tepid inflow the prior week, US-focused funds raked in almost $24 billion.

As the figure shows, that was the fourth-largest haul of 2024.

Note that the net inflow for global equity funds pushed the YTD cumulative haul above the half-trillion mark. $517 billion flowed into stock funds through mid-October. The breakdown, for those interested, is $834 billion to ETFs and $316 billion from mutual funds.

You’re reminded that historically, November is a strong month for equity inflows.