- Fund Manager Confidence (BofA Fund Manager Survey Jan 2023):
o 73% of respondents see the regional economy strengthening this year.
o 60% perceive regional equities as undervalued.
o Super bullish China with 90% seeing a robust macro rebound & easing monetary policy.
o Asian decoupling from the west with China performaning US stocks.
- Large Inflows to Asia and a shift North - Taiwan, South Korea (FT and Goldman Sachs)
o Large inflows to EM and China over the past few months
o Yet cumulative inflows into EM Asia ex-China are still only 20% of total outflows since Jan 2021
o Global funds remain significantly underweight the region. Big potential fund inflows into region in the short to medium term.
o Within the region, rotations from south to the north are seen. Northbound net buying to-date has surpassed last year’s total.
