Ashmore Breaks With Consensus With Big Bet on China Over India

(Bloomberg) — London-based asset manager Ashmore Group PLC is reducing its exposure to Indian equities and has made China the top pick in its emerging-markets fund, arguing that India’s stock market is overhyped and overcrowded while China’s is set for a rebound.

With $6.5 billion invested in emerging equities, the fund has allocated 26% of its EM equity fund to China, while reducing India to less than half that, according to Edward Evans, a London-based emerging market equities portfolio manager. He cites a divergence in valuations as the main reason for the decision.