A Case Is Building for Battered China Stocks to Beat India Peers
- Valuation gap between China, India approaching extreme levels
- There’s a ‘tactical case’ for China to outperform, SocGen Says
The South Asian nation stands out amid a slowing global economy.
Photographer: Atul Loke/BloombergThis article is for subscribers only.
Indian equities have handily beaten their Chinese peers in 2023, but some strategists are flagging the possibility of a short-term role reversal as the year draws to a close.
A widening valuation gap between the world’s two biggest emerging markets is common refrain for Societe Generale SA, UBS Group AG and Jefferies Financial Group Inc., who say the outlook for India’s returns has become less rosy. A preferred destination for investors this year, the nation also faces uncertainty going into elections in 2024. Meanwhile, China’s rising support for its economy and markets is seen providing a tailwind for its struggling stocks.