The Shanghai Composite on Monday went up nearly 6 percent, its best single-day gain since 2015. On Tuesday as well most Asian markets are starting to come off from the day’s high but the Chinese market complex is higher.

Shaun Rein, managing director of China Market Research Group, discussed the markets in an interview with CNBC-TV18.

About the impact on Indian and Chinese imports because of India-China standoff, he said: “The biggest issue I see is on investments. Eighteen of India’s 30 tech unicorns have mainland Chinese money. Chinese invested about $9.5 billion into India over the last three years. Half of that has gone into India’s tech sector.

"I think you are going to see that Chinese companies like Alibaba, Tencent are going to think twice, three, four, five times before they keep investing into Indian markets.

"Right now Chinese handset makers control 73 percent of the mobile phone market, I am not sure that Xiaomi is going to keep investing in India because there is too much political risk.”

First Published:Jul 7, 2020 6:59 PM IST