Although both are posed to outperform most developed markets, at least one senior wealth management executive believes that Chinese stocks should be the preferred choice over Indian stocks based on the former’s presently low valuation.
“Emerging markets China and India are quoting in the range of 12-13 and 17-18 price to earnings, with India clearly outperforming the rest of the world,” Stephen Corry, director and chief investment officer of Merrill Lynch Wealth Management’s Asia-Pacific region, told Reuters in an interview. “We expect China to outperform India in the second half of 2010.”