China and Bonds Pull Money as Active Funds Stumble

China led all geographies last week, pulling in $23.8B net over the period. That is the single biggest directional flow in the data, driven by a flow imbalance of 81.2, well into strong buying territory. The US added $15.0B, but that number comes from a much larger base: gross inflows of $66.7B set against $51.7B of outflows show how much churning is happening beneath the surface.

Japan stands out as the week's sharpest reversal. Over three months it bled $8.0B net as outflows dominated with an imbalance close to 50. This week it swung to a $6.7B inflow, with a flow imbalance of 86.8. That is a clean trend break. South Korea and Taiwan each added more than $3.5B over the week, maintaining momentum that is also visible in their three-month totals.

The one geography shedding money with conviction this week is the broad Emerging Markets basket, which saw a $2.1B net outflow at an imbalance of 23.0. Country-specific EM funds are gaining; the blended wrapper is not.

Geography Flows

US dominance over three months is clear: $288B net versus $27B for Global Ex-US in second place. China is third on three months at $27B, barely changed from its weekly pace. India is a persistent loser on both time frames, losing $47M this week and $1.2B over three months. The ORTEX alt data captures the backdrop: California ZEV sales fell 37% year-on-year to 80,392 vehicles in Q3 2026, their weakest reading in three years. That kind of demand signal matters for the electric-vehicle supply chains that feed investor narratives around China and emerging Asia, and may partly explain why country-specific China funds are drawing cash while the broad EM wrapper is not.

Sector Rotation

Information Technology took the top spot this week with $7.5B in net inflows. That continues a three-month trend where tech has pulled $15.8B, though the three-month flow imbalance is only 53, suggesting balanced two-way flow over the longer horizon. The weekly imbalance of 63.7 is firmer, pointing to short-term conviction.

The sectors losing money this week are instructive. Utilities shed $1.2B with a flow imbalance of just 12.5, the most lopsided selling in the table. Financials lost $1.0B and Consumer Discretionary $800M. Over three months, Financials has bled $9.5B, making it the worst performing sector on both time frames. Utilities, by contrast, had been pulling inflows over three months ($1.8B net), so this week's sharp outflow is a reversal worth watching.

Energy is positive on both time frames: $591M this week and $2.3B over three months, with consistent buying pressure.

Asset Class and Strategy

Equities took $47.4B this week, Fixed Income added $20.4B. Both are in positive territory but the proportions matter. Over three months the ratio is tighter: $521B into equities versus $295B into fixed income. Bonds are keeping pace more closely over the longer run. Commodities went negative this week at a $1.0B outflow, even though they have attracted $33.4B over three months.

The most striking strategy shift is in active management. Over three months, active funds pulled $147.6B, a flow imbalance of 70.3 and second only to vanilla passive. This week, active swung to a $9.2B outflow at an imbalance of 35.6. That is a clean one-week reversal of a three-month trend. Passive vanilla funds kept their footing at $36.2B this week. Growth strategy ETFs added $3.0B this week; value added $1.8B. Both flows are positive, but growth's share has risen relative to value compared with the three-month window, a mild tilt back toward momentum names.

Overall, the tone is cautiously risk-on. Equities and bonds both draw inflows, Asia leads outside the US, and the one clear break from the recent trend is active management, which gave back ground to passive in a single week.