Finance
Global equity funds see record outflows as U.S., China withdrawals surge
Published by Global Banking and Finance Review
Posted on January 23, 2026
2 min readLast updated: January 23, 2026
Quick Summary
Global equity funds experience record outflows, driven by significant withdrawals from U.S. and China markets, according to TD Securities.
Record Outflows Hit Global Equity Funds Amid U.S. and China Withdrawals
Impact of Withdrawals on Global Equity Funds
Jan 23 (Reuters) - Global equity funds recorded their largest outflows on record in the week to Wednesday, as heavy withdrawals from the U.S. and China outweighed a relatively strong showing in other regions, BofA Global Research said.
U.S. and China Withdrawal Trends
World stock funds saw $43.2 billion in outflows combined in the week through to Wednesday, with the U.S. seeing $16.8 billion in outflows and Chinese stocks seeing $49.2 billion in outflows, BofA said in its weekly roundup of flows in and out of world markets using data from EPFR.
Market Reactions and Geopolitical Factors
The outflows in Chinese equities were the biggest on record, which BofA attributed to selling by the so-called "national team" of Chinese state-backed investors.
Emerging Markets and Fixed-Income Flows
Chinese regulators in recent weeks have been taking action to slow the pace of market gains. [.SS]
Stocks around the world have also been hurt by the complicated geopolitical situation, most recently illustrated by U.S. President Donald Trump's threats to impose tariffs on European allies until Washington was allowed to buy Greenland.
While those concerns have subsided after Trump said a framework on a future deal over Greenland has been reached, they revived talk of the "Sell America" trade that emerged in the aftermath of Trump's sweeping tariff announcement last April, as investors look to diversify their portfolios.
European equities recorded their sixth-straight week of inflows while Japanese funds saw a $2.2 billion inflow, the biggest since October 2025, according to BofA.
Despite the Chinese weakness, global emerging markets equity funds recorded their fourth-consecutive week of increasing inflows.
Fixed-income flows remained resilient, with global funds bringing in $15.4 billion though slowing from $23.4 billion in inflows seen last week.
(Reporting by Shashwat Chauhan in Bengaluru, editing by Alun John and Sharon Singleton)
Key Takeaways
- •Global equity funds see record outflows.
- •U.S. and China lead in withdrawals.
- •Chinese equities face the largest cash out.
- •TD Securities analyzes EPFR data.
- •Impact felt despite strong regions elsewhere.
Frequently Asked Questions about Global equity funds see record outflows as U.S., China withdrawals surge
1What is an equity fund?
An equity fund is a type of mutual fund or exchange-traded fund that primarily invests in stocks, aiming to provide capital appreciation and potential dividends to investors.
2What are market withdrawals?
Market withdrawals refer to the process where investors sell their investments and pull out their capital from a particular market or fund, often due to economic concerns or market conditions.
3What is a global equity fund?
A global equity fund is an investment fund that invests in stocks from companies around the world, providing investors with diversified exposure to international markets.
