In just over a week since Donald Trump won the US Presidency, Hong Kong-based brokerage firm CLSA raised its India allocation to a 20 per cent overweight, while cutting exposure to China. This is seen as a tactical reversal from its early October update when it went ‘overweight’ on China following Beijing’s first stimulus on September 24.

With Trumps win to US election 2024, higher yields and inflation expectations are sapping scope for Fed in rate cuts, and thus Peoples Bank of China (PBOC) is expected to ease its policy stance ahead.

CLSA thinks this could lead to offshore investors pulling back from China, especially those who invested after the initial PBOC stimulus in September.