EM Weekly Fund Flows Monitor Foreign net selling w w

Portfolio Strategy Research 31 July 2026 | 8:42PM BST

Foreign net selling w/w; Korea saw record US$5bn foreign buying on Friday as tech bounced back sharply; HF Asia allocations saw sharp de-grossing in July, but exposures still elevated vs. history

Foreign (FII) flows / positioning prior to Friday, HF allocations to Asia saw sharp Sunil Koul | n EM Asia ex-China saw FII net selling US$1.4bn w/w, reductions, but remain elevated vs history – both for Goldman Sachs International

driven by Taiwan (-US$2.6bn). Despite record US$5.2bn the region, and for Korea, and Taiwan individually (net Timothy Moe, CFA | inflow Friday, Korea saw net inflows US$0.5bn w/w; India allocations of 94-96%ile vs 5-year history). Asia Info Goldman Sachs (Singapore) Pte

saw US$0.4bn buying. Non-Asia EMs saw modest buying Tech net exposure is at 20.8% (vs 27% on 22nd June) but Alvin So, CFA | ~US$230mn w/w, led by Brazil (+US$170mn). still significantly higher than the 9.6% at the start of the Goldman Sachs (Asia) L.L.C.

year. Net allocation to China declined to 7.0% — close Tarun Lalwani, CFA | to 1-year lows and at 14th %ile vs. the past 5 years. HK/China Connect, Domestic retail flows Goldman Sachs India SPL

n Southbound saw large outflows of US$2.4bn w/w (Ytd n Korea Leverage ETFs. Leverage in Korean equity Si Fu, Ph.D. | US$46.5bn), led by outflows in tech h/w, semis sector. market has declined steeply in recent days. Domestic Goldman Sachs (Asia) L.L.C.

Korea (-US$2.1bn) & Taiwan (-US$1.2bn) saw retail ETF market AUM has declined 60% (from high of Kinger Lau, CFA | selling w/w. Ytd, Asia has seen US$74bn retail inflows. US$34bn to US$14bn), to levels prior to the launch of Goldman Sachs (Asia) L.L.C.

single-stock leveraged ETFs. Relative to the total ETF John Kwon | market, leveraged domestic ETFs represent 3% of AUM, Global Equity mutual fund flows down from highs ~6%. Margin call to receivable and Goldman Sachs (Singapore) Pte

n Equity funds globally saw inflows of US$64bn w/w (vs. Amorita Goel, CFA margin loan balances have also declined. | Goldman Sachs (Singapore) Pte US$30bn inflow last week). In DM, US funds saw net n July Flows. Amid de-grossing, EM equities (ex-China) Mambuna Njie inflows of US$30bn. Japan (+US$1.2bn) saw inflows w/w | saw July cum. foreign selling US$25bn. Largest selling while Europe (-US$2.3bn) saw outflows w/w. In EM, GEM Goldman Sachs International net of strong inflows on Friday have been in Taiwan funds saw US$2.1bn w/w (+US$53bn ytd). (-US$24bn) and Korea (-US$5bn); India has seen the most inflows (+US$2bn), while DIIs have been net Focus: HF positioning; KR leverage; July flows buyers (more than US$10bn in July) based on available n Hedge Fund Positioning. Following large de-grossing exchange data.

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Goldman Sachs EM Weekly Fund Flows Monitor

Focus: Hedge Fund Positioning (July)

Exhibit 1: Allocations to Asia have seen sharp Exhibit 2: Performance challenges and market Exhibit 3: Korea Positioning: Net allocation is at reductions from recent peaks, but remain elevated moves are translating into risk reduction flows in 6.2% (78th percentile 1-year, 96th percentile vs. history. Asia. China, Korea and Taiwan have seen a reversal 5-year). Gross allocation is at 3.2% in the Global of of the YTD buying. Prime Book.

Net Regional Allocation | O/U Weights vs MSCI AC World Gross and Net Allocation: Korea Net Trading Flows: Asia Markets 4.0% 9.0%

% of Asia Net MV at start of period Gross Allocation

Percentage of Global Gross MV 3.5% 8.0%

Percentage of Global Net MV 3.2% Asia (DM+EM) Japan 7.0% 3.0% 6.0% 2.5% 5.0% Taiwan 2.0% 4.0% Korea 1.5% Net Europe Allocation 3.0% China + HK 1.0% 6.2% 2.0% 0.5% 1.0% North America 0.0% 0.0%

Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Apr-26 Jul-26

Source: Goldman Sachs FICC and Equities Source: Goldman Sachs FICC and Equities Source: Goldman Sachs FICC and Equities

Exhibit 4: Taiwan Positioning: Net allocation is at Exhibit 5: China Positioning: Net allocation to China Exhibit 6: Asia Info Tech net exposure in…