Wall Street snubs China for India in a historic markets shift

In a historic transition witnessed in global markets, investors withdraw billions of dollars from China’s slowing economy, marking a remarkable shift from two decades ago when China was viewed as the world’s foremost growth opportunity.

A substantial portion of these funds is now being directed towards India, with major Wall Street players such as Goldman Sachs Group Inc. and Morgan Stanley championing the South Asian nation as the premier investment destination for the coming decade.

The growing momentum is sparking a surge of interest akin to a gold rush. Marshall Wace, a $62 billion hedge fund, has designated India as its largest net long position after the US in its flagship hedge fund. Similarly, an arm of Zurich-based Vontobel Holding AG has elevated the country to its top emerging-market holding, while Janus Henderson Group Plc is actively considering acquisitions of fund houses. Even traditionally cautious retail investors in Japan are turning their attention to India, reducing their exposure to China in the process, according to reports.