No returns on Shanhai index in 14 yrs
Shanghai composite index hovering at 2,865 as against 3,000 in early 2010; Nifty at 21,500pts from 5,000 in early 2010 registering 4x returns
Mumbai: The Chinese market’s underperformance has been stark for many years now, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. In early 2010, the Shanghai composite index was around 3,000 points. Now, it is below that level at around 2,865: No return during the last 14 years. In sharp contrast, Nifty was around 5,000 in early 2010 and is now above 21,500, multiplying more than four times during 14 years, he said. This contrast in performance is reflected in the valuations too; while Nifty is trading at above 21 times the estimated FY24 earnings, Shanghai composite is trading at only 11.5 times, Vijayakumar added. The Chinese economy is going through difficult times with sharply slowing growth, rising unemployment and the real estate market in serious crisis. India will certainly attract more capital flows.
