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Bloomberg News Story
India Profits From China’s Inward Pivot as Xi Snubs Modi’s G20
By Vanshika Kumar
(Bloomberg) -- India Prime Minister Narendra Modi may use his hosting of this weekend’s G20 summit to underline
his nation’s position as a democratic counterweight to China’s dictatorship. It is already profiting from that strategy.
Foreign fund inflows are helping drive up Indian stocks, a reverse of the trend seen in China. Foreign direct investment
is a rising force in India and a sputtering engine for China, as US companies “friend-shore” supply chains. India relies
on exports for 22.4% of its economy, versus 20.7% for China. Indian billionaires, climbing in Asia’s rich list, are tapping
global support for massive renewables push.
Use Bloomberg’s WFII, GP, BECO, RICH and GOVS tools to analyze macro trends.
Run WFII to Monitor Portfolio Flows and GP for Charting Tools.
To track foreign portfolio investment and stock benchmarks:
Type “foreign portfolio investment” in the command line and select WFII. (Hint: click the arrow symbol at top right
for a launchpad window.)
Right click the 12M column heading and click Sort and High to Low. Click the blue text for Ticker Discovery.
On a separate window, type “FIIN12MS Index” in the command line for India Net Foreign Equity Investment 12
Month Rolling Sum USD. Select GP - Line Chart.
Add “CNFVE12M Index” in the Add Data box at top right for the similar China figure. Repeat to add “SHSZ300
Index” and “SENSEX Index” for the benchmark stock indexes.
Click 5Y above the chart.
Click Edit in the red toolbar and Securities & Data (Ensure Normalization is unticked if needed).
Set Panel to 1 for the India lines and 2 for the China lines. Set Axis to R1 for the stock indexes and L1 for the flows.
Click Color/Style and set Style to Shaded (+/-) for the flow figures.
This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.
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Click Actions to save. The shortcut is G #FFM 1891.
Indian flows and stock prices have rallied strongly after the twin blows of the Ukraine war and surging global interest
rates. China has struggled to recover by either measure. India’s $20.9 billion of net inflows from foreign equity funds in
the 12 months to Sept. 5, second only to Japan, is a stark contrast to the $68 billion in outflows from China in the 12
months ended June 30. The Chinese yuan weakened 5.9% against the dollar this year, while the Indian rupee lost
0.6%.
US Treasury Secretary Janet Yellen said “trusted trading partner” India had potential to become a more important
manufacturing center when she visited a Microsoft Inc. facility in New Delhi 10 months ago, saying companies had
been “overly dependent on risky countries.” US President Joe Biden said he was “disappointed” that China’s President
Xi Jinping won’t attend the summit, which will focus on helping developing nations grow while safeguarding the
climate.
To compare foreign direct investment in India and China:
Run BECO for Easy Charting of FDI Trends.
Type “bloomberg economics” in the command line and select BECO - Bloomberg Economics.
Click Trade/External on the left and the gray FDI tab.
In the Foreign Direct Invest. Net Inflows % GDP section, click the chart symbol next to China.
Click Additional Data at bottom right. Tick India.
Set Axis to Single.
Net foreign direct investment as a percentage of GDP fell to 1% in China in 2022, and rose to 1.5% for India. In 1993
the similar figures were 6.2% and 0.2%. Yellen highlighted plans by the US firm First Solar Inc. to build a
manufacturing facility in southern India and Apple Inc. producing iPhones in India.
For the similar export chart:
This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.
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Click Trade to Explore Trade Metrics of China and India.
Click the gray Trade tab and the Export to GDP (WB) subtab.
Click the chart symbol next to China. Click Additional Data at bottom right. Tick India.
Click the bar chart symbol above the chart.
India is emerging from China’s shadow as an export-driven economy, though wealthier citizens in both countries are
constantly expanding domestic demand.
Both India and China are competing to dominate the ranks of Asian billionaires:
Run RICH to Compare Billionaires by Nationality.
This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.
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Type “billionaire” in the command line and select RICH - Bloomberg Billionaires Index. The shortcut is RICH
<GO>.
Click Asia in the regions section and Results.
Check the Citizenship and Chg YTD columns for the top 30 using the forward chevrons at bottom right.
Asia’s top 30 richest people list includes 10 Indian citizens (8 of whom saw a wealth increase this year), versus 9 from
mainland China (5 of whom saw a decline in fortune) and 5 from Hong Kong (3 of whom saw a wealth decline.) Asia’s
two richest men Mukeshi Ambani and Gautam Adani have been forging partnerships with global leaders in
renewables to fulfill Modi’s clean energy vision.
To put India’s energy transition in context:
Run CTINR10Y Govt GOVS to Check Sovereign Climate Risk.
Type “india govt bond 10y” in the command line and select CTINR10Y Govt. Type “climate score” in the command
line and select GOVS - Government Climate Scores. The shortcut is CTINR10Y Govt GOVS.
Set Peers to BRICS.
The bar charts on the left show that India is ahead of China on carbon transition and climate policy but lags in its
power sector transition. The line chart at top right shows India has work to do to bring its emissions trends in line with
its 2070 net zero target. Click the gray CO2 Emissions tab to see India contributed to 7.4% of global emissions in
2021, versus 35% by China.
Modi will be seeking money and technology from G20 partners to achieve those goals.
Click here for the FDI chart and here for the exports chart. Click NSUB FFMSTORY to subscribe to functions-focused
stories.
This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.
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Bloomberg News Story
To contact the author of this FFM article:
Vanshika Kumar, market and product specialist: +91-22-61203737 or [email protected]
Functions for the Market stories are written by Bloomberg LP employees who may be involved in the selling of the
Bloomberg Professional Service. To suggest ideas or provide feedback, contact ff[email protected] or this
story’s editor: Sandy Hendry at [email protected]
This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and distributed locally by Bloomberg Finance LP ("BFLP") and its
subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP
with all the global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BFLP, BLP and their
affiliates do not provide investment advice, and nothing herein shall constitute an offer of financial instruments by BFLP, BLP or their affiliates.
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