One reason why equity investors prefer India over China: world-class companies
NEW DELHI: In 2015, India emerged as the world’s fastest growing large economy with its 7.4 per cent GDP growth rate outstripping China’s 6.9 per cent growth rate.
Direct allocation of equity investment by US investors into India outpaced China’s as of December, 2015. According to Hugh Young, MD – Asia, Aberdeen Asset Management, the reason why equity investors favour India over China is the availability of world-class companies.
“The difference of India compared with China is that it has some world-class companies that are available for investment. You have the classic multinationals like Unilevers of this world, you have some wonderful home-grown companies like HDFC, the pharmaceutical giants and some IT services companies,” he said.
Young said his fund would love to pour more money into China but, “we cannot find the companies”.
Krishan Kumar Totlani
The policy makers of China are the left wingers who do not believe in creating the big companies.On the other hand our performance in the matter is improving steadily & time will come when we will compete with the large economies of the world.
good definitely we had some larger companies with great professional management the recent slump in China economy is very one of the reason for investment in india
B R V Shanbhag
good to read that we have larger companies.
Well more patting yourself on the back for nothing. China does indeed have many world class companies, the Wanda group – larger than all Indian real estate companies put togeter, Xiomi, SAIC motor, ICBC – leaves the likes of HDFC bank in the dust. etc. But yes Indian companies are more attuned to the western legal system
Yes! India has so many world class Companies which can become APPLE of tomorrow – Infosys, Tata Motors, Maruti, Asian Paints, Lupin…..many more. No wonder Investors prefer ours over Chinese
Indian cos. can beat China s they are more honest.