July 24, 2015

China's Stock Market Pain Is India’s Financial Gain

The tumult in China’s stock markets has turned into a blessing for Indian shareholders.

International investors are pulling out of China, fueling record outflows through the Shanghai-Hong Kong exchange link, amid a $2.8 trillion plunge in mainland equity values since June 12. They’ve plowed $705 million into India over the same period, sparking a world-beating 7 percent gain in the benchmark S&P BSE Sensex index.
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“The recent travails in China make India seem like an oasis of calm in terms of volatility,” Jonathan Schiessl, the head of equities at the U.K.-based Ashburton Investments, which oversees $12 billion, said in an e-mail. The fund has cut its exposure to China by 1 percent in the past month to invest in Indian equities and raise its cash position, he said.

Source: http://www.bloomberg.com/news/articles/2015-07-23/china-pain-is-india-s-gain-as-international-funds-flee-to-mumbai

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