新興国市場、5月は5カ月連続の流入超、中国債券は流出超
Fortun contrasts continuing emerging-market inflows in May with persistent selling of Chinese bonds and limited demand for Chinese equities.
View detailsCapital flows explained: how cross border investment is measured, what drives emerging market flows, and Jonathan Fortun’s research on currencies and financing conditions.
Capital flows connect investment decisions in one economy with financing conditions in another. This page brings together an introduction to their measurement and Jonathan Fortun’s research on emerging markets, exchange rates and the transmission of global financial conditions. The publication archive below links to the original work and distinguishes authored research from media commentary.
Capital flows are cross border financial transactions: for example, an investor buying another country’s bonds, a company financing an overseas operation or a bank making a foreign loan. The category matters. Direct investment, portfolio investment and bank related flows describe different relationships and can behave differently. A portfolio flow estimate is therefore not a measure of every form of international financing.
A useful first question is whose activity a number describes. Nonresident purchases of domestic assets and residents’ purchases of foreign assets are different sides of the external financial relationship. Even a series called “inflows” may already subtract sales from purchases within its category. Read its definition before comparing it with a net flow total.
A flow covers a period; a stock describes a position at a date. A change in the value of foreign holdings can reflect prices and exchange rates as well as transactions. It should not automatically be interpreted as new money entering or leaving a country.
Country definitions also matter. Residence locates an entity in an economy; nationality can group it with the country of its controlling parent. The BIS explanation of residence and nationality shows why the two perspectives answer different questions. Before comparing regional totals, check which countries, investors and instruments are included.
Analysis often separates global “push” factors, such as international financial conditions, from domestic “pull” factors, such as an economy’s outlook and institutions. Their relative importance can change across periods and types of investment. The IMF literature survey on capital flow determinants provides a starting point for this distinction.
For a particular episode, the analytical task is to connect the financing decision to the receiving economy. Is a change broad across markets or concentrated in a few countries? Does it concern equity or debt? Does the adjustment appear in an exchange rate, a borrowing cost or the quantity of financing available? These questions are more informative than treating every rise in inflows as the same economic event.
High frequency indicators can help track developments before full balance of payments statistics arrive. Their coverage and construction differ, so they are not interchangeable. The IMF guide to capital flow data discusses these measurement differences and the use of timely portfolio flow proxies.
For any release, identify its observation period, publication date, country universe and revision policy. Compare like with like: a monthly estimate with another monthly estimate, and the same investment category with itself. When a source revises history, retain the distinction between the original reading and the latest estimate. A timely signal can be useful without being a complete picture.
Bond issuance describes securities being created; investor flow measures describe investment transactions. Gross issuance can include refinancing. Net issuance deducts redemptions, as set out in the BIS securities glossary. Neither number alone establishes who bought the bonds or the economy’s total net capital inflow.
Jonathan Fortun’s work connects portfolio allocation with exchange rates, external balances and financing conditions. Follow the dated publications and commentary below for the argument and evidence behind a specific episode. Institutional research retains its publisher and coauthors; a journalist quoting Jonathan remains the author of that reporting.
The Japan research theme examines another perspective on international capital allocation. The Bolivia economy theme follows monetary and foreign exchange constraints in a receiving economy. The professional biography connects these interests, and the press kit provides attribution for interviews and introductions. This reference page does not redistribute the IIF’s underlying datasets.
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Fortun contrasts continuing emerging-market inflows in May with persistent selling of Chinese bonds and limited demand for Chinese equities.
View detailsFortun discusses renewed emerging-market inflows alongside continuing withdrawals from Chinese debt. The report contrasts regional investor demand in May.
View detailsFortun explains why sustained foreign withdrawals from Chinese bonds complicate the yuan's path toward greater use as a reserve currency.
View detailsFortun discusses fading benefits from China's reopening and warns that market disruption and political risks could temper subsequent emerging-market inflows.
View detailsEmerging markets attracted $9.8 billion in portfolio investment during April 2023. Jonathan Fortun separates $7.7 billion entering debt markets from $2.1 billion entering equities. Chinese equities received $3.8 billion, exceeding the overall equity total and revealing offsetting withdrawals elsewhere.
Read the workFortun discusses investors' more cautious approach to emerging-market assets as the early-year rally lost momentum.
View detailsChinese equities accounted for more than the entire emerging market equity inflow in March 2023. Jonathan Fortun reports $9.4 billion in total portfolio inflows, split between $6.8 billion in equities and $2.6 billion in debt. China’s $7.2 billion equity intake implies offsetting withdrawals elsewhere, revealing uneven participation in the recovery.
Read the workFortun warns that restrictive Federal Reserve and European Central Bank policy could slow emerging-market inflows and increase demand for dollar hedges.
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