Source: Bloomberg
Author: John Cheng, Abhishek Vishnoi, Tania Chen
A popular stock investment strategy- "buying India and selling China" has reached a turning point for some investors.
After experiencing a record of the rise, Lazard Asset Management, Manuroy Investment Management and Candriam Belgium NV are cutting out the opening of India.They turn to old love China. At present, with the Chinese government's support for the economy, it has stimulated industrial profits and manufacturing recovery.
This new transformation highlights how each fund starts to believe that China's policy support will be enough to revitalize this narrative.Although the major Wall Street banks continued to position India as the main investment destinations in the next ten years, investors became cautious due to high valuation and supervision warning market bubble risks.
"As China becomes cheaper, some of our Chinese investment has become worthless, but the reason for their investment has increased." He said."Lazard Asset Management James Donald said. Its Chinese investment portfolio is consistent with the weight of the index, and India is" a negative factor for our investment portfolio "due to high valuations.
There are signs that this transformation is getting attention, although most people also regard it as a tactical adjustment, because the Indian economic momentum is upright, and Prime Minister Modi will win the third term.
According to HSBC Holdings, more than 90%of emerging market funds are increasing in mainland China, and this is low in the past, and on the other hand, it reduces Indian stocks.The second consecutive month of global investors through the second consecutive month through the China Unicom mechanism of Mainland China and Hong Kong, they bought mainland stocks. The last situation was in June and July.
In terms of performance, under the promotion of the Chinese government's stimulus measures, the MSCI China Index has increased since February of more than twice the Indian indicators, and India's rise has cooled down.
Vivek Dhawan, Manager of the Candriam Investment Portrait, said that its $ 2.5 billion emerging market fund has increased its opening to China and "partial sacrificing India."
"We position India's funding sources of funds that we have discovered in China, especially those subjects that are self -sufficient and localized." He said, "We are increasing companies in the semiconductor supply chain becauseChina will increase the expenditure "
