Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

There is an interesting action happening in terms of fund flows in India. Sovereign funds are finding greater advantage in India as against other investment destinations including China. Zee Business Research Analyst Ashish Chaturvedi identifies a unique trend in this report that shows hos China has lost out! Take a look! 

Chaturvedi said that there was an interesting trend that is emerging. Citing a report he said that the Sovereign Funds are now preferring India for investments over China. In 2020, the Year-to-date (YTD) data suggests that the investments in India have been three times those going to China.

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चीन के मुकाबले सॉवरेन फंड्स को भारत पसंद...2020 में किया $14.8 अरब का निवेश

आगे कैसा रहेगा ट्रेंड? जानें यहां#SovereignFund @AnilSinghvi_ @AshishZBiz pic.twitter.com/v4mCvpseVx

— Zee Business (@ZeeBusiness) December 10, 2020

The Sovereign Funds have invested around USD 14.8 billion in India. Year to date (YTD) refers to the period beginning from the first day of the current calendar year or fiscal year up to the current date. YTD information is useful to analyse business trends over time or comparing performance data to competitors or peers in the same industry. 

Chaturvedi said that this trend reversal happened after 2019. The situation was entirely different prior to this, he added. 

In 2015, while the Sovereign funds invested around USD 21.80 billion in China, they invested just around USD 4.2 billion in India. This has changed since the onset of 2019. In 2019, the sovereign fund investment in China was around USD 6.4 billion while it was around USD 10.10 billion in India. 

He said that there is a clear trend reversal seen here. 

Sovereign Funds Investment: India Vs China – why is trend reversing  

The trade war between Us and China has put investment in China at risk and taken some sheen off it. The problems between the two countries have only deepened over a period of time. The Sovereign Wealth Funds have found India to be safe and attractive investment destination. 

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The situation after the coronavirus pandemic has only weaken its position, Chaturvedi said. This has benefitted India and this trend is likely to continue, going forward, he concluded.