The Indian market has sharply outperformed its emerging market (EM) counterpart China, prompting several foreign funds to rethink their asset allocation strategies. On a one-year and year-to-date basis, the MSCI India index is up 52 per cent and 27 per cent, respectively.

       In comparison, the MSCI China index is down 7 per cent over a one-year period and 13 per cent year-to-date. China’s underperformance comes amid Beijing’s crackdown against its internet companies, many of whom dominate its benchmark indices given their size and scale. The regulatory tightening by Chinese ...