Malaysia will see higher fuel prices for the week of May 21–27, reflecting the continued impact of elevated global oil prices driven by geopolitical tensions . Fuel Prices Increase Across Key Categories The Ministry of Finance announced the following adjustments: RON97: +15 sen to RM4.85/litre Unsubsidised RON95: +20 sen to RM4.07/litre Diesel (Peninsular): +10 sen to RM4.97/litre The increases highlight the pass-through effect of global crude price spikes into domestic fuel costs. Oil Prices Remain Elevated Global energy markets continue to face pressure: Brent crude ~US$110 per barrel Up nearly 60% from pre-conflict levels (~US$70) The prolonged Middle East conflict has: Disrupted supply routes Increased shipping and insurance costs Added inflationary pressure globally Subsidies Cushion Impact for Consumers Despite rising market prices, government subsidies remain in place: Subsidised RON95: ...
Global investors are rotating back into Chinese equities, with April inflows hitting their highest level in months as sentiment improves on the back of AI-driven optimism and stabilising geopolitical concerns.
Strong Foreign Inflows Signal Renewed Interest
Foreign investors poured approximately 200 billion yuan (US$29 billion) into mainland equities in April, which is the largest inflow since January.
The data suggests a clear rebound in overseas appetite, following earlier outflows triggered by the Iran war.
Proxy Data Highlights Capital Movement
With limited official disclosure on direct flows, analysts rely on cross-border investment balance data to estimate foreign participation.
This method strips out:
- Bond flows
- Trading link transactions
- Institutional reallocations
Leaving a reliable proxy for foreign equity inflows into China.
AI Rally Drives Market Performance
The rebound in flows coincided with a strong equity rally:
- CSI 300 Index +8% in April
- Continued gains into May
Investors are increasingly focusing on AI-driven productivity gains, shifting attention away from geopolitical disruptions.
Sentiment Improves Despite Data Transparency Challenges
China’s decision to limit detailed disclosure of northbound flows since 2024 has made tracking foreign investment more difficult.
However, the latest estimates indicate:
- Confidence in Chinese equities is recovering
- Investors are re-engaging with growth themes, particularly in technology
Market Outlook Supported by Global Rotation
The return of foreign capital suggests:
- A broader rotation into undervalued markets
- Growing belief that China may benefit from global tech and AI trends
This comes as global investors seek diversification beyond US markets.
Investor Takeaways
- Foreign inflows into China reached ~US$29 billion in April, the highest since January.
- The rebound is driven by AI optimism and improving sentiment.
- Chinese equities, led by the CSI 300, are regaining momentum.
- Limited transparency in flow data remains a challenge, but trends show renewed global interest.
- China may benefit from global capital rotation and tech-driven growth themes.
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