China Investors Swap Gold for Stocks as ETFs See Record Outflow

Investors in China look to be pivoting from gold-backed exchange-traded funds into local equities, putting outflows on course for a record this month as shares push higher and bullion prices stall.

The four, major onshore gold-backed ETFs — Huaan Yifu, Bosera, E Fund and Guotai — have seen combined net outflows of about 3.2 billion yuan ($450 million) in July, according to data compiled by Bloomberg. At the same time, the CSI 300 Index has climbed 5.5%, its strongest showing since last September.