SHANGHAI, Aug 4 Reuters Foreign investors continued to cut holdings in Chinese bonds in July and dumped equities for the first time in four months, according to a report by the Institute of International Finance IIF.

Emerging markets posted a fifth straight month of portfolio outflows, setting the longest such streak in records going back to 2005, as global recession risk, inflation and a strong dollar drew away cash, showed the report released on Wednesday.

Chinese debt witnessed outflows of around 3 billion last month, while 6 billion exited other EM, IIF estimated.

If confirmed by official data, it would be the sixth consecutive month of foreign outflows from China39;s 20 trillion bond market.

During the same period, China39;s stock market witnessed 3.5 billion of foreign outflows, compared with marginal inflows of 2.5 billion in other EM markets, IIF added.

The benchmark CSI 300 Index dropped 7, down every week in July, as domestic COVID19 flareups, property woes and global recession risks weighed.

China39;s Ashares saw a rangebound, generally weaker trend since July under both domestic and overseas influences, China International Capital Corporation CICC said in a note.

Data showed the world39;s secondlargest economy slowed sharply in the second quarter, missing market expectations with an only 0.4 increase from a year earlier.

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