According to Financial Times and EPFR data, massive money has flown to Chinese equities this week.
China equity funds saw an inflow of $12.7 billion in the week ending July 8.
This is record inflow of money to Chinese equities in a single week. Previous record was $4.7 billion on week ending July 1. Another data compilation by Citi shows Chinese companies saw $13.5 billion of weekly inflow.
Financial Times points out that buying is happening but the data fails to say by whom.
The inflow took place just prior to the two day of 10% rise. China's benchmark shanghai composite rose by 5.76% yesterday and 4.5% today.
Doubts remain that this massive inflow of money could have directed by Chinese government in its bid to stem the crash. If such be the case, there would be longer term implication cost to this intervention, which may not be good for Chinese economy.
Chart courtesy Financial Times and EPFR.


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