EM Weekly Fund Flows Monitor Foreign selling in Korea continues this week

Portfolio Strategy Research 18 September 2026 | 5:24PM BST

Foreign selling in Korea continues this week; Hedge funds remain net sellers in EM Asia in September MTD, while China exposure sees a recovery

Foreign (FII) flows / positioning regions as of mid-September, DM Asia is the most net Sunil Koul | n EM Asia ex-China markets saw FII outflows of US$7.4bn bought (driven by long buys), while EM Asia is the most Goldman Sachs International

w/w, driven by Korea (-US$6.5bn). Non-Asia EMs saw net sold (driven by short sales). Hedge funds are now Timothy Moe, CFA | selling of ~US$90mn w/w, led by moderate selling in UAE O/W Asia equities (DM + EM) by +13% vs. MSCI World Goldman Sachs (Singapore) Pte

(-US$46mn). ACWI (vs. high of +20% in June). Within Asia, Korea, Alvin So, CFA | Taiwan, and Japan are the most notionally net sold Goldman Sachs (Asia) L.L.C.

markets in September, while China and Hong Kong are Tarun Lalwani, CFA HK/China Connect, Domestic retail flows | the most net bought. Chinese equities saw a recovery in Goldman Sachs India SPL n Southbound saw inflows of US$1.5bn w/w (Ytd net exposure in September month-to-date. US$53bn). Korea (+US$1.7bn) saw retail buying this Terry Chan | week, while Taiwan (-US$1.8bn) saw net retail selling. n Prelim MF Allocation: Based on prelim. August EPFR Goldman Sachs (Asia) L.L.C.

Ytd, Asian markets have seen US$61bn retail inflows. data, Asian funds are most OW China, HK and SG, and Si Fu, Ph.D. | most UW Taiwan and India. Asian funds raised exposure Goldman Sachs (Asia) L.L.C.

in China, while trimming exposure in Singapore and Kinger Lau, CFA Global Equity mutual fund flows Taiwan (vs. benchmark). EM funds are most OW | Goldman Sachs (Asia) L.L.C. n Equity funds globally saw inflows of US$79.3bn w/w (vs. Brazil/Mexico, and most UW Taiwan. Over the past John Kwon | US$9.8bn inflow last week). In DM, US funds saw net month, EM funds have raised exposure the most in India Goldman Sachs (Singapore) Pte buying of US$64bn. Europe (-US$0.6bn) saw selling, and China, and trimmed exposure in Taiwan. Sectorally, Amorita Goel, CFA while Japan (+US$1.4bn) saw buying w/w. In EM, GEM funds are most OW China Industrials, while most UW | Goldman Sachs (Singapore) Pte funds saw US$0.9bn w/w outflows driven by outflows in Taiwan Tech H/W & Semis and China Banks relative to Mambuna Njie active mandates (+US$66bn ytd). benchmark weight. | Goldman Sachs International

Focus: HF and MF Positioning n Hedge Fund Positioning (Sep): Among the major

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Goldman Sachs EM Weekly Fund Flows Monitor

Focus: Hedge Fund Positioning (Mid-September)

Exhibit 1: Among the major regions, DM Asia is the most net bought, while EM Exhibit 2: Hedge funds are now O/W Asia equities (DM + EM) by +13% vs. MSCI Asia is the most net sold in September World ACWI (vs. record high of +20% in June and +6.5% at start of the year)

Net Regional Allocation | O/U Weights vs MSCI AC World

% of Regional Gross MV at Start of Period Prime Book Net Trading Flow

% of Regional Gross MV at start of Period 20% 15% Asia (DM + EM) Asia (DM + EM) 10% Europe 5% 0% -5% -10% Europe -15% North America -20% -25%

North America Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26 Jul-26

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

Exhibit 3: Within Asia, Korea, Taiwan, and Japan are the most notionally net Exhibit 4: Chinese equities saw a recovery in net exposure in September sold markets in September, while China & HK are the most net bought

Prime Book % of Total Global Net Exposure (MV) Prime Book Asia Net Trading Flow by Market 5% 13.5%

% of Asia Gross MV at start of 2026 4% 12.5% 3% 11.5% Chinese Equities (Onshore + Offshore) 2% China + 10.5% HK 1% Japan 9.5% 0% 8.5% Taiwan -1% 7.5% -2% Korea 6.5% -3% 5.5%

Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26 Jul-26

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