Turmoil on the world’s financial markets has hit foreign
portfolio investment flows to emerging markets (EMs), which turned
negative this month for the first time in 2015 according to estimates by
the Institute of International Finance.
Aversion to EM risk was strongest in equities. The IIF expects
outflows by cross-border equity investors to total $8.7bn in August,
after outflows of an estimated $100m in July and inflows of $800m in
June.
Flows to EM bonds remained positive in August at $4.2bn, after $6.2bn
in July and $3.3bn in June. But the IIF said 7-day and 28-day moving
averages of flows for both asset classes turned negative in the month.
On August 24 alone — the last day for which it collected data
