The investment into Indian equities extended the country’s lead over its
peers as Japan’s favorite emerging stock market, partly thanks to tax-free
investment accounts that started this year. Holdings of India’s stocks rose more than those of any other developing
economy last year, according to Bloomberg analysis of government data that
factor in net purchases and asset prices.
“Indian stocks are attracting interest as a theme for economic growth, as the
next China,” said Daiju Aoki, regional chief investment officer at UBS SuMi
Trust Wealth Management Co. in Tokyo. “Client interest is more about India as a
whole rather than individual companies.”
In contrast,
flows into Chinese shares dropped the most among 14 emerging markets that are covered by Japan’s data on
international investment positions. The figures include positions of
institutional and retail investors.