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Money pulled from China finds way to Asean countries, not India

Global brokerages cut China exposure, keep the status quo on India & turn bullish on Indonesia

Credit risk funds came into the limelight after the default of IL&FS in 2018. Until last year, several funds saw a markdown on account of defaults on various debt papers. (Illustration: Binay Sinha)

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Most global brokerages had China as their biggest overweight in the Asia Pacific ex-Japan portfolio

3 min read Last Updated : Apr 27 2022 | 12:15 AM IST

The outbreak of the Omicron variant of the coronavirus and unprecedented lockdowns in China have roiled its equity market and also that of Hong Kong. After the crisis-hit Sri Lanka, China and Hong Kong are the worst-performing stock markets in Asia on a year-to-date basis.

Most global brokerages had China as their biggest overweight in the Asia Pacific ex-Japan portfolio. But given the turmoil in the world’s second-largest economy, most strategists have started to reduce their overweight position on China, in favour of Asean countries — such as Indonesia, Singapore, and Malaysia — which are seen benefitting from the surge

Topics : ASEAN China India

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