China Steals the Show as Tech Bleeds

China ETFs pulled in $22.3B in net flows last week. That is the single biggest geographic story of the past seven days. The swing is stark. Over the prior three months, China saw a net outflow of $5.3B. Bears have turned buyers fast.

Geography Flows

The U.S. added $11.7B in net inflows this week. It remains the dominant market by total AUM at nearly $50T. But its flow imbalance sits at just 54 — barely leaning positive.

Asian markets dominated the weekly rankings. South Korea drew $5.3B and Taiwan added $3.4B. Both are consistent with their three-month trend, maintaining solid buying pressure above 70 on the imbalance score.

Europe is a mixed picture. Developed Europe took in a modest $750M this week. Over three months it sits in mild outflow at -$3.1B. Germany and the U.K. both bled money across both periods. The U.K. managed a small positive week but the three-month total is a net loser.

Japan is the other standout shift. It was the second-largest regional inflow over three months at $185.4B. This week it barely broke even at $316M, with a flow imbalance of just 52. Japan momentum is fading.

Sector Rotation

Information Technology is the week's biggest loser. It shed $2.8B in net flows last week. That reversal is striking against a three-month gain of $71.5B — the largest sector inflow over that period by a wide margin.

Financials bucked the tech selloff. The sector pulled in $2.6B this week. Its three-month gain was a more modest $1.8B, so short-term conviction in banks and brokers is actually strengthening.

Energy continued its bleeding. The sector lost $1.2B this week and $4.7B over three months. Industrials dropped $630M last week after attracting $3.3B over the quarter. Both point to a rotation away from cyclical heavyweights.

Utilities, Real Estate, and Consumer Staples all posted small but positive weekly flows. These are classic defensives. Their appearance in the green column alongside a tech outflow is a meaningful signal.

Asset Class & Strategy

Equities remain the dominant destination. $55.1B flowed in last week. Fixed income added $25.9B with a flow imbalance of 77 — strong buying pressure. Over three months, commodities were a net loser at -$28.9B. This week they turned slightly positive at $1.1B, a potential stabilisation.

Currency ETFs reversed sharply. They posted $592M inflow this week but were -$6.1B over three months. That is a notable short-term reversal worth watching.

Active strategies drew $9.6B this week with an imbalance score of 76. Over three months, Active ETFs absorbed $228.4B — the clearest sign of a structural shift toward managed exposure. Growth strategies also posted strong numbers in both periods. ESG flipped. It was a net buyer over three months at $6.6B but posted outflows of $497M this week.

Overall, the tone is cautiously risk-on. Money is moving into equities and bonds together, rotating out of tech and into financials and defensives — with China making the boldest single-week return.