Emerging market investors ditch China stocks to pile into RIL, TSMC

Investors are increasing their holdings in emerging-market stocks through the iShares MSCI Emerging Markets ex China ETF, which received $148m of inflows in the past week. This comes as ETFs buying Chinese shares failed to get new inflows over the same period as China’s patchy economic recovery, geopolitical tensions and regulatory risks continue to overshadow the region. Investors have poured $639m into the $3.8bn ex-China fund, buying in during emerging-market selloffs in February and April. The all-equity fund has allocated 21% of its resources to Taiwan and 20% to India.