CLSA has increased its investment in Indian stocks while decreasing its investment in Chinese stocks. This decision comes after a period of optimism about the Chinese market, which has since faded due to concerns about trade tensions with the US and a lack of significant economic stimulus from Beijing.

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.

Experts caution that an immediate threat looms over India’s pharmaceutical and services sectors, where the US and India are close competitors.

CLSA reversed its shift from Indian to Chinese equities after Trump's re-election raised trade war concerns. The brokerage cited limited gains from China's stimulus and rising US yields, reinstating a 20% overweight on India.

CLSA reverses its investment shift from India to China, citing economic concerns in China, trade tensions, and rising U.S. yields. It increases India exposure, despite risks like market issuance surge.

CLSA has reversed earlier allocation, increasing India and cutting China, even as India faces sustained foreign investor outflows. It said several global investors have been waiting for a correction to re-enter the Indian markets.