As China unleashes its "three arrows" to strongly invest in Chinese assets, the Chinese capital market has welcomed a long-awaited hope. Moreover, it's not just Chinese capital that is pouring into the Chinese market frantically, but international capital has also begun to bet on the Chinese market.

It was thought that in the current context of China's financial counteroffensive, the United States would be the most severely affected. However, before the U.S. could feel the chill, India has been placed on the chopping block by the U.S. The Indian stock market has witnessed an epic sell-off, with a single-week sell-off scale reaching a historical high. Is international capital trying to quickly harvest India to bet on the Chinese market? Will India transform from a beneficiary to a victim in the Sino-American game?

The U.S. Hurricane-style Harvesting of India

There is nothing that cannot be done if one can think of it. It was assumed that the vibrancy of the Chinese market would accelerate the outflow of U.S. capital. However, what was unexpected was that the vibrancy of the Chinese market has accelerated the U.S.'s harvesting of India, with international capital even setting a record for the largest single-week sell-off. As the Sino-American game deepens, is the U.S. planning to close the net in advance?

Recently, amidst the vibrancy of the Chinese capital market, bad news has emerged from India. That is, the Indian stock market has suddenly been hit by an epic sell-off, with a single-week sell-off scale reaching around $4.5 billion. Moreover, India's Nifty 50 index has plummeted by nearly 4.45%.

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This is a very bad omen for India. Because everyone knows that the biggest reason why India can be favored by international capital is not because India has done anything right, but because of the game between China and the United States.

Moreover, like China, India also has a vast population market, which means that India appears to be, on the surface, a developing country with huge development potential, just like China.

Therefore, we have seen that in recent years, a large amount of international industrial capital has chosen to invest in India, such as Apple, and international capital is also optimistic about India, so a large amount of capital has entered the Indian stock market. As a result, a strange phenomenon has emerged, that is, the Indian stock market has been rising for ten years, and has even broken through a scale of 4 trillion U.S. dollars, while India's economy has not changed significantly. This also means that with the opening of the Chinese capital market, the capital outflow from India will reach trillions of rupees.It was thought that with Modi aligning with the United States and embracing the BRICS, India would benefit from both sides. However, unexpectedly, India has been abandoned by international capital.

It can be said that India is currently facing a difficult predicament. As we all know, one of the biggest reasons for international and industrial capital from various countries to invest and produce in India lies in the competition between China and the United States. And it is now quite clear that the trend of China-US competition is beginning to reverse.

In the past, we were on the defensive side, so to avoid being harvested by American capital, we would make the greatest efforts to eliminate various risks, especially in the financial sector. This led to our financial assets being completely undervalued.

As many people have observed, while the outside world was booming, we were cold. However, the situation has now reversed, meaning that the competition between China and the United States in the financial field has also reversed.

In the past, there was a fear of being harvested by foreign capital, but now there is a fear of being bottom-fished by foreign capital. This also means that our financial market has begun to shift from defense to offense. In this way, for global capital, holding the highly risky US stocks and Indian stocks is not as good as actively embracing Chinese assets.

Therefore, we see that whether it is Morgan, Goldman Sachs, or HSBC, they all express their intention to actively do more with Chinese assets, even adjusting the Chinese stock market to an overweight position. All of this indicates one point, that is, global capital is changing its past pattern. From seeking a third party to the current return, it is showing that India's advantages are being erased.

Is A-shares becoming the new favorite of international capital?

People go to higher places, and money flows to lower places. For current international capital, it is naturally that Chinese assets have a higher cost-performance ratio. And as the competition between China and the United States enters the second half, this phenomenon will become more clear.Regarding the changes in China's capital market today, many people might think that it is merely to stimulate consumption, thereby altering the economic development model. In fact, there is another aspect: the West has always hoped that we would open the doors to our financial markets because they are aware that the capital markets in Europe and America have become severely bubbled, and thus they need to seek healthier markets. At the same time, the United States' money printing also requires assets to support it all.

Comparatively speaking, the healthiest market in the world today is undoubtedly ours. Many people may hold various prejudices against the Chinese market, believing that it is not as mature as those in Europe and America.

The most important point is that in the past, our development focus was mainly on the industrial side because a large population needed employment, and the standard of living of the people needed to be satisfied with material goods. Therefore, we see our manufacturing and industrial sectors flourishing.

Now, as the competition between China and the United States gradually enters the second half, and with the Federal Reserve's interest rate cuts, it means that the United States' plan to harvest us has failed. For us, since external threats have decreased, the capital market can also get back on track.

Moreover, it is not that foreign capital is deliberately optimistic about us today, but rather that the current Chinese market is more oriented towards China rather than the global market. However, China's manufacturing industry is oriented towards the global market. In this way, we can find that Chinese capital is completely underestimated.

Now, China's capital market is the main venue for Chinese enterprises' financing activities. What about the future? Will China's capital market become a place for enterprises from all over the world to raise funds and for global capital investment?

In the past, our strength was not enough, and to prevent harvesting, we made various restrictions. In the future, as Chinese products go international, China's capital market will also gradually go international. After all, to become the protagonist of the international market, it is necessary to achieve coexistence of interests.

This also means that we are currently preparing for future international integration. The current craze of international capital inflow also shows that they have seen this point, that is, China's market will no longer be a market for Chinese people, but will gradually become an international market, allowing global enterprises and capital to participate.

So, the current situation is just the beginning, and India's past glory was that international capital had few choices and wanted to replicate us to achieve substitution. Now, the opening of the Chinese market means that global capital finally has the opportunity to participate. And this is just the beginning.