{
  "id": 10146485,
  "title": "Local Influences and Return Chasing: Entering a New Era in Emerging Equity Markets",
  "url": "https://urgent.news/2026/09/27/local-influences-and-return-chasing-entering-a-new-era-in-emerging",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-27T04:15:15.000Z",
  "source": {
    "name": "Thailand Business News",
    "slug": "thailand-business-news",
    "url": "https://www.thailand-business-news.com/markets/329573-local-influences-and-return-chasing-entering-a-new-era-in-emerging-equity-markets"
  },
  "original_language": "en",
  "account": "This paper examines a shift in global equity flows, driven by investor sensitivity to local returns post-COVID-19. The study, conducted by Jongrim Ha, Daisoon Kim, and Inhwan So, utilized detailed investor-level data and a dynamic factor model to analyze the drivers behind capital flows to emerging markets. Historically, global factors had a strong influence on these flows; however, the research reveals that local, country-specific factors have now taken precedence.\n\nThe study shows that investors are increasingly focusing on local excess returns, emphasizing the role of domestic price discovery mechanisms. This recalibration illustrates a renewed emphasis on local market conditions and highlights the shift in active return chasing among investors. In the post-pandemic landscape, investors are particularly interested in markets with robust local price discovery mechanisms, where their domestic factors exert more influence on investment decisions than global trends.\n\nThe collaborative effort between Ha, Kim, and So provides a comprehensive examination of the dynamic relationship between global financial cycles and country-specific investment drivers. Their research sheds light on how investor behaviors are shifting in response to changes in both global and local market conditions, offering valuable insights into the evolving landscape of emerging equity markets.",
  "summary": "This paper examines a shift in global equity flows, highlighting that local factors now dominate over global ones in emerging markets, driven by investor sensitivity to local returns post-COVID. Structural Shifts in Global Financial Flows The question of whether the global financial cycle still predominantly influences capital flows to emerging markets is explored in this […]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}