Back to top

Image: Bigstock

China vs. India: Best Emerging Market for Investors?

Read MoreHide Full Article

  • (1:30) - What Is Driving The Rally In Chinese Tech Stocks?
  • (7:15) - What Is China’s Current Position In The AI Race?
  • (11:55) - Will This Rally Continue For Much Longer?
  • (21:10) - Breaking Down The Current Performance of India’s Stock Market
  • (27:45) - What Impact Will AI Have On India’s Outsourcing Industry?
  • (33:30) - Focusing On Internet and E-Commerce Within China And India: EMQQ & INQQ
  • (37:40) - Episode Roundup: Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Kevin Carter, founder of EMQQ Global, about investing in emerging markets, particularly China and India.

Chinese tech stocks have been on a tear lately, especially since DeepSeek revealed its AI breakthrough. The startup achieved this at a fraction of the cost of similar U.S. AI models and without access to the most sophisticated NVIDIA (NVDA - Free Report) chips.

Alibaba (BABA - Free Report) also unveiled its latest AI model last week, reminding investors that China is not far behind the U.S. in the AI race.

Chinese President Xi Jinping recently met with top Chinese tech leaders, signaling that Beijing’s regulatory crackdown on the sector is over.

Can the rally continue in light of President Trump’s tariffs and other macroeconomic and geopolitical risks?

Kevin believes that Chinese stocks remain very cheap. Furthermore, these companies have cash-rich balance sheets, and stock buybacks have led to faster earnings growth.

While Chinese stocks have a long-term track record of underperformance, Indian stocks have outperformed the S&P 500 in the past. Last year, India became the most expensive market in the world based on some valuation metrics.

Indian stocks have plunged this year, with foreign investors pulling money out. A portion of that capital has flowed into much cheaper Chinese equities.

Some experts are concerned about the impact of AI on India’s outsourcing industry. Is India still the “perfect emerging market”?

According to Kevin, the sell-off presents a rare opportunity for long-term investors to gain exposure to the world’s fastest-growing major economy—at a discount.

The Emerging Markets Internet & Ecommerce ETF (EMQQ - Free Report) holds leading internet and e-commerce companies in China and other developing countries. Tencent (TCEHY - Free Report) and Alibaba (BABA - Free Report) are among its top holdings.

The India Internet & E-commerce ETF (INQQ - Free Report) includes promising Indian companies poised to benefit from the country’s digital boom.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

Published in