China’s onshore and offshore equity markets have added more than US$1.3 trillion ($1.74 trillion) in total value in just the past month amid such reallocations, while India’s market has shrunk by more than US$720 billion. The MSCI China Index is on track to outperform its Indian counterpart for a third-straight month, the longest such streak in two years.
DeepSeek’s breakthrough in artificial intelligence is helping drive a rotation of stock funds back into China from India.
Hedge funds have been piling into Chinese equities at the fastest pace in months as bullishness on the DeepSeek-driven technology rally adds to hopes for more economic stimulus. In contrast, India is suffering a record exodus of cash on concerns over waning macro growth, slowing corporate earnings and expensive stock valuations.
