The News
India is quickly catching up to China as the world’s largest emerging market. Indian stocks now comprise close to 20% of an MSCI index that tracks the stock performance of companies in fast-growing economies, while China has dropped to a quarter from 40% in 2020.
“The narrowing gap has become one of the biggest issues for investors in emerging markets this year,” The Financial Times wrote, “as they debate whether to put capital into an already red-hot Indian market, or into Chinese stocks that are relatively cheap, but are being hit by an economic slowdown.” Foreign investment has continued to shrink in China as businesses are increasingly wary of its sluggish economy and geopolitical risks.