BRICS liquidity surges
BRICS nations now show banking liquidity above $10 trillion and an aggregate M2 money supply approaching $43 trillion—numbers investors say could reshape capital flows into commodities and EM assets social data thread. Valuation context: BRICS average P/E sits near 13 versus the G7’s ~19 (China ~10, India/Brazil ~13), a stark cheapness differential prompting fresh interest from active managers valuation note strategy mention.
China’s broad money (M2) reached ¥340.29 trillion at end‑December [2025 tradingeconomics.com], which converts to roughly $49.3 trillion using a March‑2026 CNY‑USD rate of about 0.145 USD per [CNY exchange-rates.org]. India’s M2 was reported at $844.85 billion in [December‑2025 ceicdata.com], Brazil’s M2 stood near $1.335 trillion in [October‑2025 ceicdata.com], South Africa’s M2 measured about $298.6 billion in [January‑2026 ceicdata.com], and Russia’s M2 was ~121,266 billion rubles in September‑2025 per central‑bank [series tradingeconomics.com]. Major BRICS equity markets trade noticeably cheaper than many developed benchmarks: China’s market P/E has been reported near ~10–14 depending on the [index worldperatio.com], India’s market P/E around 12.7 (March‑2026) [worldperatio.com], and Brazil’s market P/E roughly 13–14 (March‑2026) [worldperatio.com], while several G7 benchmarks cluster near the high‑teens (~19) P/E (e.g., UK 19.7, Japan 19.3, France 19.9 on recent country tables). worldperatio.com Investor flows have already shown the shift toward commodities and EM vehicles: FactSet data compiled by market outlets put total commodity ETF inflows at about $58 billion in [2025 benzinga.com], and EMEA/US‑listed EM equity ETPs recorded multi‑billion inflows (US‑listed EM ETPs saw roughly $41.3 billion in 2025). etfworld.co.uk Weekly EPFR/market trackers flagged fresh buying into global and emerging‑market funds in January‑2026—roughly $27.5 billion into combined Global and Global Emerging Markets equity and bond funds in one mid‑January EPFR [snapshot isimarkets.com]—and the IIF’s capital‑flows work shows nonresident flows to emerging markets have regained momentum after prior weakness. iif.com Large managers are responding in public guidance: BlackRock’s 2026 outlook highlights structural EM opportunities and regionally diversified tech/commodity exposure as a [theme blackrock.com], while J.P. Morgan’s 2026 investor outlook explicitly notes BRICS expansion and recommends positioning for regional structural shifts and potential rate‑cut cycles that support EM returns. am.jpmorgan.com
