*FIIs Moving to China* 💰🇨🇳🚨 The Indian stock market has experienced a significant downturn in the past five months, with benchmark indices like the _*Nifty dropping by 14% from their peak in September 2024*_. This correction is even more pronounced in the broader market, with mid-cap and small-cap indices falling by 20-24%. 📉 A major factor contributing to this decline is the substantial withdrawal of FIIs, who have _*sold off a staggering ₹1.01 trillion worth of Indian equities since October 2024*_, including ₹23,710 crore in February alone. ❌💰 Interestingly the exodus of foreign capital from India _*coincides with China's introduction of economic stimulus measures*_ aimed at revitalizing its slowing growth. Following this China has become a more attractive destination for foreign investment. 🇨🇳💸 Comparing the MSCI India and MSCI China indices reveals that while _*India outperformed China between June and September 2024 but since then China surged ahead massively*_. Furthermore, China's Shanghai Shenzhen CSI 300 index currently boasts a more appealing valuation compared to its _*historical averages, trading at 16.2x earnings against its 5-year and 10-year averages of 15.3x and 15.2x*_ respectively. In contrast, _*Nifty is trading at 21.3x against its 5-year and 10-year averages of 23.9x and 22.8x*_, respectively. 😳🇮🇳 _So in terms of valuations, China seems to be more attractive for the FIIs._ Along with India other emerging markets like Brazil, Indonesia, and South Korea also saw significant withdrawals. Looking ahead, analysts suggest that _*FIIs are likely to remain concentrated in China in the short to medium term*_. 📈🇨🇳💰