Asian equities get $3bn in Aug;India corners $700 mn:HSBC

Foreign institutional investors reduced the pace of funds flow into Asia in August, but India is still among those countries in the region that received the maximum inflows during the month, an HSBC survey says. According to the global financial services major, FIIs continued to buy Asian equities in August, albeit at a slower pace than the previous month. Korea, Taiwan and India received the maximum inflows during the month, while Indonesia witnessed outflows.

Overall, Asian equities received USD 3 billion till August 25. Out of which, Korea received USD 1.4 billion, Taiwan (USD 800 million) and India (USD 700 million) -- cornering the most inflows. Meanwhile, Indonesia equities witnessed net outflows this month (- USD 100 million). Total foreign inflows for the region stand at USD 36.7 billion so far this year.

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"China remains the most over-owned market in the region, followed by India," the global brokerage firm said. Among developed markets, funds have preferred Singapore over Hong Kong. Malaysia remains the least owned market in the region. Meanwhile, mutual funds have turned more bullish and bought USD 8.0 billion worth of Asian equities in the past four weeks (ended August 20) compared with net inflows of USD 1.1 billion in the previous four weeks, according to EPFR Global.