Global Hedge Funds Pivot to India as Alternative to China, Drawn by Economic Potential Despite Some Challenges

Global hedge funds are expanding into the Indian market, seeing it as an alternative to China where they previously focused.

Funds like Dymon Asia Capital and Citadel are setting up offices in India, citing the country's economic opportunity and talent pool.

India's stock market valuation has doubled to $3.8 trillion, providing sufficient liquidity for funds' strategies.

Quantitative strategies funds like Gao Capital are also entering India given the spike in trading volumes.

However some funds still face challenges around regulations, taxes and liquidity in India.