India has been mostly on the receiving end of funds fleeing China in benchmark EM allocations and we therefore once again quietly remind our readers that a Chinese comeback is equal to a sell-off in India.

The India vs China correlation/beta has turned negative twice in recent years. First when the reopening trade was on in late 2022 / early 2023 and now again with the recovery/stimulus trade ongoing.

If China truly rebounds, India is the main loser.