Credit Suisse - Asian Equity Strategy: Net Foreign Buying

Reached US$9.8 bn in May; biggest month ever for net foreign buying

Net foreign buying in Emerging Asia was US$9.77 bn in May. This was the single biggest month ever for net foreign buying since our data started in 1996.
As a result of the strong net foreign buying in April (US$8.2 bn) and May, YTD net foreign buying has reached US$14 bn. This compares with net foreign selling of US$70 bn in 2008.
The biggest market for net foreign buying in May was India, which attracted US$4.15 bn or 42% of all net foreign buying in emerging Asia. After India was Korea, which attracted US$3.2 bn of net foreign buying in May.
While we are surprised at the huge degree of net foreign buying in May, Figure 2 highlights that on a rolling 12-month basis, foreigners are still net sellers to the tune of 1.4% of emerging Asia’s market capitalisation.
On a rolling 12-month basis, the two most under-owned markets in emerging Asia are Thailand (net foreign selling 3.3% of market cap), followed by Korea (at 2.3% of market cap).

Year-to-date net foreign buying reaches US$14 bn versus US$70 bn of selling last year Figure 1 highlights that net foreign buying in emerging Asia was US$9.77 bn in May. This is the single biggest month ever for net foreign buying since our data started in 1996.

As a result of the strong net foreign buying in April (US$8.2 bn) and May, YTD net foreign buying has reached US$14 bn. This compares with net foreign selling of US$70 bn in 2008. While we are surprised at the huge degree of net foreign buying in
May, foreigners are still net sellers to the tune of 1.4% of emerging Asia’s market
capitalisation.