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>International investors are pulling out of China, fueling record outflows through the Shanghai-Hong Kong exchange link, amid a $2.8 trillion plunge in mainland
by lindig 11y ago
>International investors are pulling out of China, fueling record outflows through the Shanghai-Hong Kong exchange link, amid a $2.8 trillion plunge in mainland equity values since June 12. They’ve plowed $705 million into India over the same period, sparking a world-beating 7 percent gain in the benchmark S&P BSE Sensex index.
$705m? I doubt that this amount would move the needle. Maybe $705B. As this is the central number in this article I'm now sceptical about the rest.
- npalli 11y agoNo, $705m is correct. The $705B number would be gigantic. The entire stock exchange capitalization in India is about $3 Trillion. An influx of so much money could easily triple or quadruple the stock market in a flash. It is almost as big as the TARP bailout. Now, it is legitimate to ask how much impact $705m has on the stock market. I don't think it matters that much yet. If it leads to further inflows it could make a difference.
- lindig 11y agoSo an influx of $705M is supposed to move a $3T market by 7%? That's 705e6/3e12=.0002 or 0.02%. I still don't buy it.