Chinese market decline continues in 2024: India advances in MSCI EMI

Since 2021, the stocks of the China have seen a decline of nearly $4 trillion in value, marking it one of the worst performers globally last year. This trend has persisted into the beginning of 2024.

China’s share in MSCI Emerging Market Index has also dropped to record lows at 23.77% as per Bloomberg (and 26.53% as per MSCI data). India’s weightage has increased from 13% a year ago to 16.73% at the end of December 2023, which sits at an all time high.

India’s presence in the MSCI Emerging Markets (EM) index remained stable at approximately 8% from 2015 until October 2020. However, starting in November 2020, India’s representation has experienced a twofold increase and presently hovers around 17%.

India’s weigtage in MSCI EMI is now the second highest, surpassing Taiwan and we expect it to increase further in 2024.