'Chindia will alter global economy'
The rise of China and India together will alter the economy and generate investment opportunities, experts say.india Updated: Dec 05, 2006 14:20 IST
The rise of Chindia - a combination of China and India - will alter the world economy and generate investment opportunities in several sectors, international investment experts predicted.
The high economic growth in China and India will change the world economy and generate investment opportunities in the consumer, agricultural, industrial, banking and logistics sectors, the China Securities Journal quoted the managing director and head of markets, China of JP Morgan Chase & Co, Jing Ulrich as saying.
Her remarks were echoed by Timothy J Bond, analyst with Merrill Lynch & Co., who pointed out in a report that the Indian stock market had grown much faster than the Chinese market in recent years but the latter had enormous potential.
Jing Ulrich said overseas fund managers were looking at the two countries as key investment destinations following Chinese President Hu Jintao's recent state visit to India.
Ashburton, an asset management company based in Jersey, the United Kingdom, launched in November a Chindia Equity Fund that invests in Chinese and Indian companies, the report noted.
The company decided to launch the fund as China is expected to grow at a rate of eight per cent to 10 per cent per year for a long period, while a growth rate of eight per cent is projected for India, fund manager Jonathan Schiessel said.
He said consumer demand would grow exponentially in both countries, driven by an expanding generation with higher aspirations, offering investors tremendous opportunities.
First Published: Dec 05, 2006 13:48 IST