US investors prefer Indian equities to Chinese, says data released by US Treasury
Posted on: 24/Mar/2016 2:59:43 PM
Data released by the US Treasury has shown that India has overtaken China in terms of direct equity allocation by US investors. This is inspite of India`s over exposure within the emerging market basket declining. According to the data, India makes up for 1.8 per cent of US foreign equity holdings. China, on the other hand, holds 1.6 per cent. The data is as in December 2015.
In December 2015, US investors direct investment in Indian equities has risen to $12 billion. It was at $7 billion in September 2013. During the same period, US investors� direct investment in Chinese equities has declined to $11.1 billion from $12.8 billion in 2013.
According to data compiled by Kotak Institutional Equities, the average US investor`s equity allocation to emerging markets as reduced to 12 per cent. At its peak in December 2009, it was 18 per cent.
