The Imminent Inclusion of Indian Sovereign Bonds in EM Bond Indices is Attracting Huge Foreign Inflows👇
Source: Neha Sahni, JP Morgan
China and Hong Kong stocks lost nearly $5 trillion in 3 years — more than India’s market cap
Stocks in China and Hong Kong sold off a massive $4.8 trillion in market capitalization since 2021, which according to HSBC, is more than the value of the Indian stock market. Indian stocks have rallied amid broader optimism about the country’s growth. Despite a subdued global IPO market, research from EY showed Indian stock exchanges also had the most IPOs in 2023. https://lnkd.in/eFCFMe2s Source: CNBC
China's trade surplus in the first 2 months of 2024 is the biggest EVER.
Here's China's dilemma. It's caught in a deflationary debt spiral. Exports are a way out. But - at the same time - China's relations with the "developed" world are deteriorating. Source chart: Robin Brooks
Indian bonds are set to be added to global indexes. Here’s why it could be a gamechanger - CNBC
- The decision to include Indian government bonds in two prominent global indexes recently is being viewed as a shot in the arm for the rapidly growing country and is expected to bring in billions of inflows. - India’s bonds will be added to the JPMorgan Government Bond Index-Emerging Markets (GBI-EM) in June, the Wall Street lender announced in September. - Goldman Sachs said it expects India’s bond markets to see inflows “upwards of $40 billion from the time of announcement to the end of the scale-in period, or around $2 billion per month.” - The biggest buyers of India’s government debt have so far been institutional organizations such as banks, mutual funds and insurance firms but addition to global indexes means it could now diversify the country’s avenues to raise funds. https://lnkd.in/d7hwmgZH Source: CNBC
With real estate bubble bursting, no access to foreign equities and bitcoin, no wonder that people are flocking to gold.
Source: Bloomberg, Michel A.Arouet
In recent years, India’s economy has continued to boom, just as China and other fast-growing countries have endured a post-pandemic slowdown.
But, the country has a long way to go to replicate China’s success, after the economic fortunes of the two diverged dramatically some 30 years ago. Indeed, as recently as 1992, the GDP per capita of the 2 countries — which share a 2,167-mile border — was roughly equivalent: today, India’s is roughly one-fifth of China’s reported $12.7k. The International Monetary Fund (IMF) predicts that India made up 15% of global growth in 2023, and, having overtaken the UK as the world’s 5th largest economy in 2022, it’s now on track for 3rd place behind the US and China by 2030. Source: Chartr
BREAKING: Japan's core inflation accelerates to 2.8%, the first increase in 4 months.
Japan's core inflation has now been above the Bank of Japan's 2% target for 23 consecutive months. Source: Win Smart
China scrutinizes PwC role in $78 billion Evergrande fraud case
Chinese authorities are examining the role of PWC in China Evergrande Group’s accounting practices after the developer was accused of a $78 billion fraud, ramping up pressure on the global accounting giant that audited a slew of developers before the sector’s meltdown.
Source: Bloomberg
