INSUBCONTINENT EXCLUSIVE:
China, once heralded as the top emerging Asian market, is witnessing a noticeable shift in global capital flows due to economic and
geopolitical risks.Investors, in their quest for safer avenues, are pivoting towards other emerging Asian markets like India and
inclination towards alternatives with fewer risks.According to Goldman Sachs, for the first time since 2017, the foreign investment inflows
into Asian emerging-market stocks, excluding China, have topped net buying of mainland China stocks via the Stock Connect program.Investors,
in their quest for safer avenues, are pivoting towards other emerging Asian markets like India and Vietnam
(Photo Internet reproduction)The totals stood at US$39 billion and US$32 billion, respectively.This trend underscores the record pace at
concerns.Investors, particularly from America and Europe, are apprehensive about the potential fallout from a Taiwan conflict.This fear,
benchmark against the MSCI Emerging Markets Index, increasingly prefer markets outside China.The recent surge in demand for emerging-market
decades ago.Data from Morningstar Direct highlights that a record-high eight exchange-traded funds and investment trusts excluding China
substantially increased net assets over the past couple of years.Investors are increasingly eyeing India as a promising alternative as the
MSCI Emerging Markets Index, excluding China, outperforms the main index.Amid an expanding middle class and the anticipation of significant
multinationals relocating their manufacturing bases from China to India, the Indian market shows strong potential.Meanwhile, Vietnam,
scenario underscores a significant shift in the emerging Asian market landscape.China faces stiff competition from India and Vietnam as
investors continue to seek alternatives amid escalating economic and geopolitical uncertainties.
