China is creating emerging industry leaders, and regardless of what happens in the Chinese stock market, the country cannot be ignored as a fierce competitor
To accommodate India's 10 per cent weight in the GBI EM index, HSBC said in a recent note, a reweighting will occur for other EM peers in the index, which will see a reduction in their weights.
India's inclusion in global bond indices was discussed for nearly a decade before the inclusion in the widely tracked JP Morgan index was finally announced last September
The investors are focusing on the two nations in emerging Asia, thanks in part to an expected boom in infrastructure spending, which in turn bodes well for the countries' economies
India led the way with a robust influx of $2.39 billion into its bonds, the highest since August 2017, fueled by anticipation of its inclusion in JP Morgan's emerging market debt index this year
Earlier in the day, JPMorgan said it would include India in its global emerging market bond indices over 10 months starting June 2024, triggering close to $24 billion in flows.