Investors and banks have invested more than half-a-trillion dollars into emerging markets in 2006, with China and other Asian economies accounting for the lion’s share of such money flows. The 2006 figure of 502 billion dollars was just slightly below the record level of 509 billion dollars in 2005.

The report by the global association of big financial institutions and banks, showed investors remained upbeat on countries with greater economic risks in 2006, but that this trend will likely moderate somewhat in 2007. The volume of private capital flows to emerging markets is likely to total 469 billion dollars in 2007.

The net private capital flows of 197 billion dollars went to Asia in 2006, while emerging European economies accounted for 218 billion dollars. Some 46 billion dollars went to Latin America and 31 billion to Africa. Asian economic powerhouse China would likely continue to be the recipient of the largest share of net direct investment. ‘China will continue to dominate in this category, accounting for 55 billion of total net direct investment flows to emerging markets.