A momentous shift is under way in global markets as investors pull billions of dollars from China’s sputtering economy, two decades after betting on the country as the world’s biggest growth story. Even Japan’s traditionally conservative retail investors are embracing India and paring exposure to China. The country’s population is still largely poor, stock markets are expensive and bond markets insular. “In terms of index weights, China would be lower and India bigger," said Mark Matthews, the Singapore-based head of Asia research at Bank Julius Baer, which launched its first-ever India fund last year. “An enormous success is priced into India’s markets," said Mark Williams, a fund manager at Somerset Capital Management.

Source: Mint February 06, 2024 15:01 UTC