InvestorQ : With Chinese stocks falling so sharply, do you thin it has made China more attractive than India?
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With Chinese stocks falling so sharply, do you thin it has made China more attractive than India?

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Riya Dwivedi answered.
1 month ago
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In the last few quarters, one of the worst performing stock markets has been that of China. One question is whether the sharp fall in Chinese stocks has made them relatively attractive compared to India. Just look at some of the return numbers. For the Sep-22 quarter, MSCI India Index rallied 10% while the MSCI China index was down by a whopping -23% in the same period. This return gap of 33% is the biggest gap between India and China in any quarter since the year 2000. So it is surely something special.

One of the questions being raises is whether this vast quarterly outperformance by India would coax global investors to look at China more favourably than India? Not exactly if you listen into global fund managers. China has seen its markets take a hit on the back of stringent COVID restrictions along with weak demand. Even long time China believers like Mark Mobius are more positive on India. Since early 2021, Chinese equities have lost market capitalization to the tune of $5 trillion. However, global investors still remain cautious about China despite the fall, especially after the pandemic and subsequent actions of China.

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