FIIs are making big investments in china by selling shares!
The selling by foreign investors, which started from october 2024, has not stopped yet. Talking about the last 5 months, so far foreign investors have withdrawn about 37 billion dollars from the indian market. On the other hand, if we talk about february 2025 alone, FIIs sold shares worth 34,574 crores. In such a situation, the question is bound to arise that where are foreign investors investing their money after withdrawing it from the indian market.
Foreign investors are turning towards China
At present, a phrase is very popular among foreign investors, 'Sell in India, Buy in China'. Due to this phrase, while the indian market is continuously falling, the Chinese market has seen a boom. According to reports, while the market cap of the indian market has decreased drastically since october 2024, the market cap of china has increased by about 2 trillion dollars. Let us now understand why foreign investors are investing in the Chinese stock market.
China's strong comeback
China's stock market has made a tremendous comeback in recent months, which has increased the attraction of investors. Hong Kong's Hang Seng index has risen 16 percent in a month, while India's Nifty has fallen more than 2 percent. The low valuation and strong earnings growth of Chinese companies have also attracted investors, especially the performance of companies like Alibaba and Lenovo played an important role in pulling foreign investors towards the Chinese market.
China's new plans
china has recently launched an action plan to promote foreign investment, which emphasizes on easing investment in sectors like telecommunications and biotechnology. Under this plan, the government has announced measures to expand market access for foreign investment, reduce financial restrictions and promote a fair business environment. This is encouraging investors to invest in China.
Continuous decline in indian stock market
The indian stock market has fallen sharply in recent months, reducing the confidence of foreign investors in the indian market. The indian stock market has lost more than one trillion dollars of capital since october 2024, while china has registered a growth of two trillion dollars in the same period. This decline and uncertainty is driving investors away from the indian market.
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