CLSA has increased its investment in Indian stocks while decreasing its investment in Chinese stocks. This decision comes after a period of optimism about the Chinese market, which has since faded due to concerns about trade tensions with the US and a lack of significant economic stimulus from Beijing.

India is emerging as one of the least affected markets in the region when it comes to former U.S. President Donald Trump's trade policies, highlighted a report by global brokerage firm CLSA. The report stated that this resilience is attributed to India's relatively low trade exposure to the U.

Read why has CLSA reversed its allocation strategy, raising investment in Indian equities while cutting China exposure.

In just over a week since Donald Trump won the US Presidency, Hong Kong-based brokerage firm CLSA raised its India allocation to a 20 per cent overweight, while cutting exposure to China. This is seen as a tactical reversal from its early October update when it went ‘overweight’ on China following Beijing’s first stimulus on September 24.

China's recent economic woes, including trade tensions with the US and falling property prices, will likely continue to weigh on the Chinese equity market, it believes. In contrast, India is seen as a more attractive investment destination due to its strong economic growth and relatively low exposure to trade risks, CLSA said in a note.

CLSA returns to a benchmark on China and 20% overweight on India, anticipating the return of a Trump trade war against Beijing.

CLSA reverses its investment shift from India to China, citing economic concerns in China, trade tensions, and rising U.S. yields. It increases India exposure, despite risks like market issuance surge.

CLSA has reversed earlier allocation, increasing India and cutting China, even as India faces sustained foreign investor outflows. It said several global investors have been waiting for a correction to re-enter the Indian markets.

Global brokerage firm CLSA has reversed its early tactical shift from Indian equities to Chinese stocks, and has decided to raise India allocation while cutting exposure to China.

CLSA has now positioned India as a 20% overweight in its portfolio, reflecting a more optimistic outlook for the country.

With Trumps win to US election 2024, higher yields and inflation expectations are sapping scope for Fed in rate cuts, and thus Peoples Bank of China (PBOC) is expected to ease its policy stance ahead.