Hong Kong family offices turn attention to India, following global trend towards ‘prime destination for investment’
- Analysts consider India a promising growth story, with significant economic expansion and an influx of capital into equities and fixed income
- ‘India is the next big domestic demand story for the next 25 to 30 years,’ fund manager says
As China grapples with economic challenges, a growing number of Hong Kong family offices are following the global trend of diversifying their investments by turning their attention to India.
Their decisions come as analysts and global investors consider India a promising growth story in Asia, with expectations of significant economic expansion in the coming years and an influx of capital into equities and fixed income.
“We have been very optimistic about India’s potential and view it as an additional strategic market alongside China,” said William Chow, deputy group CEO of Hong Kong-based multi-family office Raffles Family Office. “We believe that India is a prime destination for investment. We adopt a dynamic investment approach whereby currently the firm has around 10 to 15 per cent of Indian exposure in our portfolio through stocks and [exchange traded funds].”
India’s stock market capitalisation surpassed Hong Kong’s for the first time on January 23, reaching US$4.33 trillion compared with Hong Kong’s US$4.29 trillion, making it the fourth-largest stock market in the world.
Despite a short-term consolidation following a rally, analysts anticipate a positive outlook on the back of the country’s strong economy.
