China Surge Heads a Broad Risk-On Week

China ETFs pulled in $12.3B in the past week alone. That made them the single biggest geographic draw globally. The momentum marks a sharp reversal: over three months, China saw a net outflow of $5.6B. Investors who sat out the China rally are now piling back in.

Geography Flows

China's $12.3B weekly inflow dwarfs every other region. Global ETFs added $5.3B and US-focused funds brought in $5.2B. Taiwan attracted $3.6B, with a flow imbalance of 91 — almost pure buying pressure. Japan added $3.0B.

The three-month picture tells a different story for China. The country sat in net outflow over the quarter, making this week's buying a clear trend break. Taiwan also showed a reversal: it has been a steady $20B inflow over three months, and buying accelerated this week.

UK ETFs shed $237M over the week. Germany and South Korea also saw outflows. South Korea's flow imbalance dropped to 39 — sellers dominated.

Sector Rotation

Health Care led all sectors this week with $1.1B in net inflows. Financials added $652M. Energy brought in $316M.

Industrials was the week's notable loser. It shed $774M despite gross inflows of $2.3B — heavy selling overwhelmed buyers. That contrasts with the three-month trend, where Industrials pulled in $3.3B net.

Tech tells the most striking story. Information Technology attracted $67.7B over three months — the dominant sector trade of the quarter. But this week it was nearly flat, with just $30M net on $11.7B of gross two-way activity. The tech trade looks exhausted at the margin.

Energy flipped negative over three months, losing $4.2B, while posting a small $316M inflow this week. That divergence suggests early but tentative rotation back into energy.

Asset Class and Strategy

Equity ETFs absorbed $35.8B in the past week. Fixed Income added $25.1B. Both asset classes are attracting fresh capital simultaneously — a sign investors are not making a hard risk-on or risk-off call, but spreading exposure broadly.

Commodities shed $2.7B this week. That aligns with the three-month outflow of $32B. The commodity trade remains firmly out of favour.

Active strategies pulled in $10.1B on a weekly basis, with a flow imbalance of 79 — strong buying conviction. Over three months, active funds gathered $230B, second only to vanilla passive. Investors are clearly willing to pay for active management right now.

Growth strategies also stand out. They added $105B over three months with a flow imbalance of 77. This week, Growth continued to attract $1.2B. Value posted outflows in both periods — $586M this week and $2.7B over the quarter.

The overall tone is risk-on with breadth. Money is moving into equities, bonds, active funds, and growth strategies at the same time, while commodities and value continue to bleed.