Capital inflows to Asia will slow, says Fitch

For the first six months of the year, foreign net selling in Asian equity markets totalled $13.7 billion, the worst in seven years.

Capital inflows to Asia have started slowing down and this trend will likely continue, according to Fitch Ratings.

Fitch attributes the slowdown to the heightened risk aversion of global investors and AsiaƆs deteriorating economic fundamentals.

Foreign direct inflows to Asia in the first quarter of 2008 were still strong, according to Fitch data. The problem lies with foreign participation in local equity markets which has resulted in net outflows and international issuance of debt securities which has slowed. Fitch...

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