India looks set to overtake China as the place to invest as millionaires scramble to escape from under Xi Jinping‘s perilous Chinese economy. Wall Street has seen a shift of money flowing into India rather than China is the country battles a “perilous” economy.
This diversion has been evidenced as the National Stock Exchange (NSE) in Mumbai recently overtook the Hong Kong Stock Exchange (HKEX), making India the fourth global financial centre.
And experts have also predicted that investment flowing away from China to India will continue as the Chinese mega rich scramble to locate their riches – and themselves – elsewhere.
The news of India’s stock market growth comes comes as experts warn China’s economy is in trouble and warning signs are “flashing red” for President Xi Jinping.
The country’s brutal economic downturn is due to a crisis in the property market and an ageing population.
Vikas Pershad, a manager at M&G Investment in Singapore, said: “People are interested in India for several reasons—one is simply that it’s not China, but also because it has a credible long-term growth story with a huge GDP, vigorous and open to global capital at an early stage of stock market sophistication,” reports Bloomberg.
The news of inventors switching allegiances to India rather than China come as China’s billionaires try to funnel their cash elsewhere too.
Of the world’s estimated 2,640 billionaires around 562 are thought to be in China down from 607 last year reveals Forbes.
And because of crackdowns on financiers and tumultuous political climate many of China’s mega rich are not only trying to move their cash but also themselves out of the country.
