Investors are turning their backs on China due to excessive interference by the Chinese government. Their choice now is India. According to investors, Chinese government interference is increasing, which they don’t like. Investors prefer emerging markets.
News agency Yahoo Finance reported that the survey of investors was conducted by the Official Monetary and Financial Institutions Forum (OMFIF). According to their survey, two-fifths of 100 investors are in favor of investing in India. In contrast, less than a quarter supported China. Investors are equally supportive of Brazil.
According to OMFIF, the total financial capital of investors in China is 25.9 trillion dollars. A quarter of these investors said they are no longer investing in China.
Craig Thorburn, director of the Futures Fund, which manages assets in Australia, echoed similar sentiments. “We are reducing investment in China,” he said.
The Chinese economy has weakened due to the effects of the coronavirus lockdown and the Russia-Ukraine war. Economists predicted that the Chinese government would be able to recover its economy by 2023. But nothing happened. As a result, investors are disappointed.
Nikhil Sanghani, managing director of OMFIF’s Economic and Monetary Policy Institute, said, ‘Large and long-term investments usually do not leave the market overnight. But now the possibility of new investment in China has decreased. Perhaps they are now looking to move into emerging markets. Especially investors are going to India instead of China.