Outperformed, China hears calls to learn from India's mature stock market
Two months ago, China’s largest lender by market value The Industrial and Commercial Bank of China (ICBC), launched China’s first India-dedicated publicly offered investment fund. State-controlled ICBC said the Indian market offered the best opportunity for Chinese investors due to the prospects of double-digit growth.
“As the most important emerging market overseas, the Indian stock market’s long-term trend must be positive. For Chinese investors, the current moment offers the best opportunity to get started in Indian stocks,” Global Times, the news outlet controlled by the Chinese Communist Party, wrote.
Impressed with India's mature stock market, China is not only investing but also willing to learn from it. There are calls in China to emulate the Indian market standards, Global Times wrote. In the past decade, Indian stock market has outperformed that in the Chinese mainland. Since October 2008, Indian stocks have gained by 394 per cent, while the main index in the Chinese mainland has only risen 70 per cent.
"Compared with the Chinese mainland stock market, India is more mature. It has far more foreign institutional investor (FIIs) with a high tolerance for risk, whereas the Chinese market is made up by mostly speculative private investors. This makes China's A-Share market very volatile and sensitive to financial risks," Liu Xiaoxue, an associate research fellow at the Chinese Academy of Social Sciences' National Institute of International Strategy, told Global Times.
Liu said the difference reflected the Indian equity market's long history compared with the market in China. The Bombay Stock Exchange, set up in 1875, was Asia's first stock exchange, while the first stock exchange in the Chinese mainland was set up in 1990.
"India has had a massive trade deficit for decades. As a result, it's done a lot of homework in attracting overseas investors such as FIIs, including making its stock market infrastructure compliant with international standards so as to protect investors' interests," she said, adding that Chinese regulators should learn from India.
Illustrating the difference between the Indian and Chinese stock markets, Liu said the Indian stock market allowed the free flow of capital and had shorting mechanisms that allowed investors to hedge against risks. But the Chinese mainland's share market, due to the presence of state-owned enterprises, found it hard to design such a mechanism, she said.
Liu also said that the Indian market might benefit from China's ongoing trade row with the US. "As concerns over trade tension linger, anyone looking to invest in Asian emerging markets may turn to India over China," she said.
来源：三泰虎 http://www.santaihu.com/45817.html 译者：Jessica.Wu
We can show the world one more innovation by keeping it open on all days except Saturday''s, Sunday''s and just 2 compulsory holidays-Aug 15th and Oct 2nd.I mean the Stock Exchanges.
Instead of levying LTCG & STCG on Ind citizens, govt must levy tax on FII & esp on chinese investors....
Chinese are really wily people. See the difference between Japan and China in the bullet train projects. They have grabbed major port in Sri Lanka and going to usurp half of Pakistan. Keep them a yard away.
The Chinese will not move a finger without a purpose and would stop at nothing to get to their goals. They are hardworking, surreptitious, unscrupulous and above all have only one GOD named money. The have wrecked the economies of a number of ASEAN countries and from the lessons learnt there are wrecking the economy of the western world.
Don''t trust Chinese. They will destroy the stock market.
I m investing in my country. Through mutual fund.
Indian stock markets are excellent - no question about it.
Let the Chinese in and you will no more be able to say the same.
I don't necessarily share that pessimism. Presumably, if the Indian stock markets have been robust and resilient enough all these years with FIIs, FPIs, overseas funds, with enough safeguards and shorting mechanisms etc. in place, I see no reason why Chinese investment should be any threat, since they will be governed by those very same set of exchange rules.
Rajendra Vitthal Ishi
Very nice article great information thanks
Beware of Chinese Money. They are the first grade manipulators. It will be Chinese state not individual investors. To safeguard the Indian investors SEBI should put suitable time limit on Chinese investment.
We should welcome Chinese investment. However it is of utmost importance that adverse trade balance of some $50 billion is tackled on war footing. The trade imbalance has adversely affected our industry. PM Modiji has completely faied to tackle China on economic front and drawn no advantage of geopolitics.
Umanath Yeshwant Rege
China is more than 50 times ahead of us in all segments. Both of us were independent almost same time. I feel we have lot to learn from them. Chinese extremely cunning. They first joined Russia and learnt and obtained all the technology from them and though they call themselves they are today co unist-Capitalist. Today as we all know they are close to USA.That is the reason Trump has put all strictures on import from them which will hurt them badly. China''s economy will collapse soon. Neighbors will breathe in peace if China comes a few notches down rather than the collapse.
And who are the FII''s might I ask? Nothing but Indian Black Money flowing out in the form of Hawala and coming back as Participatory notes... @Swamy39
There is no transparency in China It is just like iron wall . Financial institution have no inclusion of people These illiterate co unists would shift their policy failures on global economy sending tremors around world markets as they did in past
Let Chinese come. They will face the same fate as 13000 NSEL Investors who were looted of their lifetime saving of Rs 11000 crores. Govt not taking any action against fraudsters who are enjoying Acche Din!
Failed to invest in OBR projects in India, Now Chinese wants to invest their money into Share Market in India....