NEW YORK, Sept 1 (Reuters) – Emerging market stocks and bonds saw foreign net inflows in August and for a third consecutive month, but the pace of flows has sharply slowed since June, data from the Institute of International Finance showed on Tuesday.

Non-resident portfolio inflows to emerging markets slowed to $2.1 billion in August from $15.2 billion in July and $29.4 billion in June, the IIF said.

“Our data shows that the rebound in flows to (emerging markets) is small compared to outflows earlier in the year,” the IIF said in a statement. “One reason may be growing differentiation in flows to EM, with some markets seeing outflows that continue to build.”

EM debt saw outflows of $2.3 billion, the first negative reading since March, while equity saw $4.4 billion in inflows.

Non-Chinese emerging market stocks attracted some $3.8 billion, the data showed, the largest monthly inflow since July 2019. Chinese equities saw marginal inflows of $0.6 billion.

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