Welcome to ETMarkets’ Investors Guide, a show about asset classes, market trends, and investment opportunities. This is Chiranjivi Chakraborty.
The aggressiveness with which the Chinese government has clamped down on the country’s consumer technology companies has shocked investors around the world.
While technology companies have come under increased scrutiny in recent years, no one has challenged their might like the Chinese government has.
The shockwaves of China’s actions have made investors rethink if they should invest in Chinese companies at all and if not China then where? Many suggest India could be an obvious destination for venture capitalists, family offices and sovereign wealth funds looking to get out of China.
We caught up with Edelweiss AMC’s Head of Product Marketing and Digital Business Niranjan Awasthi to understand what is unfolding in China and if India could stand to benefit from this purge.
Q. Can you break it down for us as to what is really happening in China currently vis-a-vis the technology sector?
Q. Not only in China, but the tech sector is coming under increased scrutiny around the world. Do you believe China’s actions could give confidence to other governments to put a leash on their tech sector? We have already seen India, EU do it in limited ways?
Q. Does this mark some sort of tipping point for investing in technology companies, especially, as the threat of regulatory action grows?
Q. Some have suggested that this entire episode could help India as global long-term investors shift portfolio focus. What are your thoughts and have you already started seeing some chatter around this?
Q. Is it possible that we may see a reduction in China’s weight in MSCI indices if the index aggregator chose to take action on grounds of illiberal policies. If so, how will it benefit India?
That’s it folks in this week’s edition of the Investors’ Guide podcast. Do come back next Saturday for the next episode. You can also check out our regular podcasts on the equity market twice every week day on ETMarkets.com.
Have a great day!
