Chinese state-run bank ICBC launches first India-dedicated investment fund
A state-run bank in China launched the country's first India-dedicated publicly offered investment fund, saying the Indian market offers the best opportunity due to prospects of double-digit growth. The Industrial and Commercial Bank of China (ICBC) Credit Suisse India Market Fund will "invest in exchange-traded funds listed on more than 20 exchanges in Europe and the US that are based on the Indian market".
The India Fund will invest in Indian economy's future
The Industrial and Commercial Bank of China (ICBC) Credit Suisse India Market Fund will invest in the future of the Indian economy and track the distribution of the industrial structure across the Indian market, the report quoted a fund manager as saying. The state-run Global Times reported that the fund is the country's first publicly offered one for investing in India.
Move follows Modi-Xi summit in Wuhan
ICBC's move, regarded significant by observers to boost investments in India comes a fortnight after the first-ever informal summit between PM Narendra Modi and Chinese President Xi Jinping at Wuhan. The bank while launching the fund gave an upbeat picture of India's economic growth path.
The certainty of India's growth is very clear: Global Times
"As the most important emerging market overseas, the Indian stock market's long-term trend must be positive. For Chinese investors, the current moment offers the best opportunity to get started in Indian stocks," the Global Times reported on the launch of ICBC's India fund. "Considering the continuous acceleration of urbanization and the expansion of the middle class, India's future value will be large," it said.
An investor can enjoy double-digit economic growth: Report
If estimated by purchasing power parity, India's GDP is already close to 7% of the world. The situation is similar to China when it started to rise a decade ago, the Global Times report said. The Indian stock market underwent a correction in the first quarter, which means it offers a good opportunity for opening positions, the report added.
Sectors for investments listed by ICBC
ICBC listed sectors for investments specifically, in terms of the major industries weighted distribution of the index. The financial industry will account for the highest proportion, followed by information technology, alternative consumption, energy, essential consumption, raw materials, medicine, healthcare and other industries.
A rare opportunity to invest overseas, says Global Times
"Through our research, we found that at the same risk-level, after joining the Indian market, the expected return of the portfolio can be increased," the report said. Under current institutional framework, this is a rare opportunity to invest overseas. Recent research indicates that Indian market gradually became one of the world's best-performing markets due to ongoing reforms, macroeconomic improvement, and enhanced profitability, it said.
India not affected by US-China trade friction
"Take March as an example. Due to trade friction between China and the US, foreign capital showed mostly net outflows from other Asian stock markets. However, India's capital inflows reached $2.1 billion...in sharp contrast to other markets," the report said. "It has become a safe haven for funds. Chinese investors should pay close attention to the Indian stock-market and seize new opportunities," it said.