New Delhi: India’s valuations offer value as compared to Chinese equities as the nation is currently the largest underweight in Global Emerging Market (GEM) portfolios from the Asia region, with only a quarter of tracked funds holding overweight positions, a report said on Thursday.

Despite strong interest in the region’s AI supply chain — particularly in Taiwan and South Korea, Asia’s equity story is poised for a rotation toward markets offering broader value and earnings visibility, with India standing out prominently.

“India is currently the biggest underweight in GEM portfolios; only a quarter of the funds we track are overweight India. And after recent underperformance, we think India’s valuations offer value as compared to Chinese equities,” HSBC Global Research said in its report.

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