ETFs focused on China are gaining popularity as hedge funds shift investments from India.

From Zacks Investment Research: 2025-02-19 14:12:12

DeepSeek’s AI innovation is boosting Chinese equities, leading to a shift of hedge funds from India to China. China’s markets have gained $1.3 trillion while India’s have declined by $720 billion. The MSCI China Index is set to outperform India for a third month. DeepSeek’s success showcases China’s AI ecosystem, attracting more investors. Expectations of economic stimulus in China are also luring investors. China’s cheaper valuation compared to India is another factor driving investment. China ETFs like FCA, FXI, FLCH, and MCHI are gaining momentum. Despite the positive outlook for China, uncertainties remain, including Trump’s tariffs and India’s long-term growth prospects.



Read more at Zacks Investment Research: ETFs to Bet Big on China Amid Fund Rotation – February 19, 2025