Direct Investment by US: India Overtakes China..!
Though India's overexposure within the emerging
market basket has gradually declined, India has overtaken China in terms of
direct equity allocation by US investors.
The data released by US
Treasury shows India makes up 1.8% of US foreign equity holdings as on December
2015 as against 1.6% of China.
US investors direct investment in Indian equities
has risen from $7 billion in September 2013 to $ 1,200 crore in December 2015.
During the same period US investors' direct
investment in Chinese equities has declined from $ 1,280 crore to $ 1,110 crore.
However, India's overexposure within the EM
basket has gradually declined in 2015.
On the other hand, the average US investor's
equity allocation to emerging markets is down to 12%, substantially lower than
the peak of 18% in December 2009, according to data compiled by Kotak
Institutional Equities.
From a peak of 5.2% (January 2015), the
over-allocation into India by active funds has come down to 3.7% in January
2016.
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