China equities defy Asia outflow as mandates rack up

China’s already-slowing economic growth faces major headwinds as its trade spat with the US escalates  not that one can tell from the amount of offshore capital pouring into mainland Chinese stocks or the growing number of China mandates.

While institutions have pulled a net $139.4 billion from Asia-Pacific equity markets from the start of 2015 to June 30 this year, they have invested a net $3.9 billion into Chinese stocks over the same period, according to data provider eVestment see graph below.

For Jay Kloepfer, San Francisco-based head of capital markets research at US...