Emerging Market ETF sees eight consecutive increases, with China leading the capital influx: Invesco CQQQ records a historic single-day inflow

Data shows that the Invesco China Technology ETF (code CQQQ) once again became the champion in attracting capital among U.S. exchange-traded funds (ETFs) investing in Chinese assets last week.

According to data compiled by the media, the fund recorded an inflow of $292 million in a single week, attracting net purchases for the sixth consecutive week, marking the longest streak of inflows since the end of March.

Among them, the inflow on Monday alone reached $160 million, setting a historical high for the fund. On that day, both the mainland and Hong Kong stock markets rose, boosted by policy expectations. The mainland market was closed from October 1 to 8 due to the National Day holiday.

More broadly, U.S.-listed ETFs investing in emerging market stocks and bonds achieved net inflows for the eighth consecutive week in the week ending October 3, with a total of $1.89 billion, up from $1.33 billion the previous week.

Since the beginning of this year, related funds have accumulated $26.2 billion in inflows. Among them, equity ETFs saw inflows of $1.44 billion, while bond ETFs attracted $446 million, increasing the total size of emerging market ETFs from $441 billion to $454.3 billion.

Supported by this, the MSCI Emerging Markets Index rose 3.6% for the week, closing at 1373.89 points, the highest level since June 2021. The mainland and Hong Kong markets topped the inflow rankings with a total of $695 million; in contrast, the Argentine market recorded an outflow of about $34 million.

A previous article by Wall Street Insights stated that according to HSBC's emerging markets survey, investor sentiment is warming, with China being the preferred market for stock investments. The HSBC report pointed out that investors were already optimistic about the prospects of emerging market assets, and recent survey results show that this optimism has strengthened.

The market generally believes that emerging market stocks will rise in the next three months. They also expect the performance of emerging market stocks to outperform developed markets, with China becoming the preferred destination for stock investments.

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