China Steals the Week From U.S. Equities

China ETFs pulled in $22.3B net in just one week — the single largest geographic flow of the period. That dwarfs the U.S. at $11.7B. The contrast is striking. Over the past three months, China was actually in net outflow at -$5.3B. Money that spent the quarter leaving China is now rushing back in.

Geography Flows

China's weekly flow imbalance scored 81.2 out of 100. That signals heavy buying pressure, not a trickle. Taiwan added $3.4B and South Korea $5.3B. Asian markets dominated the top-five inflows for the week. The U.S. still attracted $11.7B, but its flow imbalance was only 54.3 — barely above neutral.

The U.K. and Germany both bled money this week. The U.K. posted -$169M with a flow imbalance of just 24.9 — strong selling pressure. Germany lost -$100M. Over three months, both had been recovering. This week marks a reversal worth watching.

Japan is interesting. It sits at only $316M net inflow this week, despite being the second-largest destination over three months at $185.4B. Gross flows in Japan were massive at $5.2B in and $4.9B out. That signals high churn, not conviction in either direction.

Sector Rotation

Technology suffered the biggest sector outflow of the week at -$2.8B. Over three months, Tech led all sectors with $71.5B in net inflows. The short-term reversal is sharp. Financials were the only major sector to attract meaningful money this week, pulling in $2.6B net. That is the strongest weekly sector reading.

Energy lost -$1.2B this week and remains in three-month outflow at -$4.7B. Industrials fell -$630M this week despite positive three-month flows of $3.3B. Healthcare, Real Estate, and Consumer Staples all saw small positive flows over three months but are essentially flat on a weekly basis.

Asset Class & Strategy

Equities absorbed $55.1B in net flows this week. Fixed Income added $25.9B. Both are moving in the same direction, which points to broad risk appetite rather than a classic rotation from stocks to bonds.

Commodities turned mildly positive this week at +$1.1B. Over three months they were deep in outflow at -$28.9B. That is a notable short-term reversal. Currency ETFs also swung — positive this week at +$592M versus -$6.1B over three months.

On strategy, passive Vanilla funds dominated at $42.4B. Active strategies added $9.6B with a flow imbalance of 75.9 — one of the strongest buying signals in the data. Growth ETFs took in $3.7B this week. ESG saw -$497M outflow this week, reversing a positive three-month trend of +$6.6B.

The overall tone this week is risk-on, but the money is rotating east — away from U.S. Tech and toward Asian markets and Financial sector plays.