Skip navigation

CNBC Stock Blog

RSS FEED

» Help

Current DateTime: 12:38:38 21 Nov 2009
LinksList Documentid: 30328029
India or China: Which Is the Better Place to Invest?
Published: Friday, 13 Nov 2009 | 10:01 AM ET
Text Size
By: Lianting Tu
Special to CNBC

When both India’s Bombay Sensex and China’s Shanghai composite indices have soared about 70 percent year to date, many investors have added both markets to their A-list. But which country is a better place to invest? David Riedel, founder of Riedel Research Group and Paul Goodwin, analyst and editor for Cabot China & Emerging Markets Newsletter shared their opinions.

David Riedel picks India over China, based on India’s demographics, politics and productivity.

“China is the fastest aging population in the world and India has 31 percent of its population under the age of 14. That’s the consumer boom waiting to happen,” Riedel says. He also thinks India’s democratic political system is constructive to business investment. India’s infrastructure, however, still lags way behind China, which leads Riedel to believe that India is a land of more opportunities.

“There is a lot of hanging fruit to be harvested in India to get the productivity together and build that infrastructure,” says Riedel. “India is the place to go with your million dollars.”

On the other side, Paul Goodwin makes a case for investing in China.

“China is what’s happening right now. Whether or not you approve of a communist government, the government is extremely experienced and good in running the economy. Right now China’s engine is just running faster,” Paul says.

As China's industrial output rose 16.1 percent in October from a year earlier, more investors start to believe China’s economy is on a solid path to recovery. After Beijing's initial $586 billion stimulus package, Goodwin believes China’s ballooning middle class has become the main driver behind its growth and recommends consumer stocks such as Baidu.com [BIDU  Loading...      ()   ] (China’s top online search engine company) and Ctrip.com [CTRP  Loading...      ()   ] (an online travel agency in China) that play into the spending power of China’s middle class.

______________________________
CNBC Data Pages:

______________________________

______________________________
Disclosures:

Disclosure information was not available for Ror his company.

Disclaimer

© 2009 CNBC.com
Add This share icon
Text Size
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 02:07:59 20 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 08:57:19 20 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 04:40:46 20 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 12:54:15 20 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters