Indian Stock Market VS China’s Stock Market

Momentous measures performed by china have caught the attention of analysts. Leading analysts are favouring China over India for short-to-medium term investment. The reason behind this favouration  China’s stock markets are inexpensive in comparison to India’s stock market , instead, it offers potential returns and lower risk .

In a recent survey , done by BofA securities, depicts the most optismistic view since April 2023 as 48 % of the global investers expect stronger economic growth in China.With this , there are two types of global investors which comes in 17 percent. Firstly , 14 percent of investers who belives in investing in Chinese stock is a popular trade . Secondly , only to gold . Elara securities also noted that whatever shortages happened in China could lead to $6 billion Selling in Indian stock market.

This is how Leading brokerages are interpreting in the recent changes in China’s economy and investment strategies

1. MACQUARIE

Many global emerging fund managers who previously invested less in China are now increasing their investments from last few weeks. Although, they believe the short term rally has still room to grow because it’s hard to keep positive long term view on China.In consequence,they are reducing their investments in India and investing more money in China. While , In the long term they remain more optimistic about India than China. Whereas, In short term, India faces challenges like slowing car sales, lower tax revenue, and slower credit growth.

2. JEFFERIES

For the first time in a while Chinese authorities have boosted confidence in economy. Recently, Chinese equity have rushed quickly, similar to past boom-and-bust cycles. This rapid growth and rise is dilemma for those investors who compared their performance to other Asian markets and with this many investors had given up and stopped investing their altogether.

3.MORGAN STANLEY

In the short term, Chinese authorities committed to “ample” fiscal deficit expansion that it should help stablizing market sentiment after recent volatility.Now China’s economy policy shift is clear as things won’t get fully return to the way they were before.However only 3 months left in 2024 including octuber , so new new fiscal measures are likely to come in 2025. Investors are focusing on companies with reliable earnings.

4.BoFA Securities

Japan stood at first as it shows that it is the favourite market in Asia pacific. Taiwan comes at second ,meanwhile South Korea is lagging behind because it seems with limited investor interest towards the corporate value-up program.China’s improved outlook has come at the expense of India, as investors are now reducing their investments in Indian stocks.

5.Elara securities

Recent government or measures have given investors hope as China’s equity performed well in the short -term(3-6 ) perspectives.But in the long run , these measures might not fix the housing market , for improving consumers spending. So strong measures are required to improve these all. China’s export – economies also faces difficulties due to taxes imposed by US, the EU and Canada and German economy also adds further risk for China’s economy.