Business News Desk – FIIs have started withdrawing their money from India. They are now investing their money in China. If we look at the figures, it is clear that FIIs have sold heavily in India. This is the highest in 4 years. On one day i.e. on 3 October 2024, FIIs sold shares worth Rs 15,243 crore in 6 hours. However, experts say that the fundamentals of Indian markets are strong. Growth in the economy continues. Therefore FIIs will have to return.
What did FII do?
Why did FIIs suddenly move towards China? There are cheap valuations in China’s markets. The economy has received a big relief package. Besides, the realty sector has also received a big push. China has made loans cheaper. Due to all these reasons sentiments have become stronger.
When will FIIs break ties with China – Rajiv Jain of GQG Partners says that in the last 3 years we have seen enthusiasm about China among FIIs many times. Short term trading party is ok in China. But can one really invest with a 3-5 year perspective?
Citi reports on rotation from India to China – CSI300 index has jumped 24% in a week. Many policies were announced in China last week. This year, better returns are expected from China than India. But- investment in India will continue due to strong macro and better growth expectations.
But is it not easy to invest in China?-Gevkal Research says that foreign investors avoid investing in China. China’s problems are opportunities for us. It is too early to think that India’s bull market will stop.
