Hello everyone, and welcome back to our weekly positioning watch.

The moves from last week continue with China still being super bid going into this week, and the flows that we are seeing into Chinese equity ETFs are becoming almost hilarious now, as everyone and their mother is piling into the China story at current junctures. The weekly inflow is at 3.5 bn USD on a weekly basis now, so we’re talking a 5-6 std. dev. move in both fund flows and prices right now.

We will release a story on the fundamentals of the Chinese economy later today, because while the sentiment is soaring, fundamentals are still looking weak(ish), and although multiples of Chinese equities have looked cheap in a historical context for quite a while now, there are reasons to be worried about what comes next.

Chart of the week: Chinese fund flows keep on going