India is among the investors who have taken notice of the recent upswing in the Chinese stock market. China’s market capitalization has returned to the $10 trillion threshold for the first time since August 2023 thanks to its recently implemented stimulus plans.Despite the post-COVID slowdown, the Chinese market’s valuation story is now positive, according to Radhika Gupta, MD & CEO of Edelweiss Asset Management. “China’s market, being the second largest globally, offers attractive valuations for long-term investors,” Gupta stated. However, she advised against short-term trading due to the volatility of the market.
China focused mutual funds in india
Before talking about China focused mutual funds in India, let’s dive into the main sectors to consider for investment.
Technology: Future growth is anticipated to be driven by China’s innovations in artificial intelligence (AI) and tech.
Insurance industry: With changes in place, there is hope for a recovery in the insurance industry.
Carbon neutrality and electric vehicles: China is in a good position to gain from the global trend toward sustainability as it has the largest market for electric vehicles worldwide.
Property and renovation: Government stimulus programs might bring back the property market, which would then positively impact the building and home improvement industries.When it comes to the banking and financial industries. It may experience more uncertainty, Gupta suggests exercising prudence. Investment opportunities for Indian citizens Indian investors can access the Chinese market in a number of ways, most notably via investing in Chinese equity-focused mutual funds and exchange-traded funds (ETFs).
China focused mutual funds in india
There are the following china focused mutual funds in india;
- Axis greater china equity fund of funds
- Edelweiss greater china equity offshore fund
- Nippon india ETF hang seng BeEs
- Mirae asset Hang Seng Tech etf