The Zhitong Finance App learned that Guotai Junan released a research report saying that with regard to investor suggestions for allocating Indian equity assets, the first thing to do is to focus on the value of the franchises of monopoly enterprises owned by India's chaebols. Second, priority can be given to investing in listed companies under Chaebou that are engaged in infrastructure construction, or listed companies under Chaebou that are engaged in emerging industries. Finally, investing in Indian stock indices can also indirectly share India's demographic dividends and oligopoly profits.

▍ Guotai Junan's main views are as follows:

What is a chaebol: A chaebol is a product of the development of a family enterprise group to a certain extent.

India's chaebols are controlled by families and have significant influence in various industries, such as the Tata family, the Bella family, the Ambani family, and the Adani family.

Big four families:

The Tata family started with cotton and textiles, and has gone through six generations. Industries include steel, infrastructure, chemicals, consumption, and technology. The Bella family started in the textile and yarn trade. After six generations, the industry was mainly infrastructure and textiles. The Ambani family has gone through two generations. The family mainly uses Reliance Industries as the backbone of the industry. Its business scope covers retail, digital services, multimedia entertainment, oil and gas, and petrochemical refining. The Adani family has only one generation and owns India's largest private port, Port Mondra.

Compared with Japanese and Korean chaebols, Indian chaebol companies have a tighter internal structure and are family-centered in their management model. Their companies are competitive in the Indian domestic market, focus on low-end manufacturing, and rely on franchises to monopolize the market.

Chaebong economy and India's stock boom: India's economy has maintained medium to high growth over the past ten years, due first to strong domestic demand associated with the demographic dividend, and secondly, to the mutual achievements of India's chaebol and Modi government.

Although the chaebol economy may widen the gap between rich and poor in India in the long term, in an environment where the “cake” of the economy is growing, the negative effects are being diluted intentionally or unintentionally. Thanks to the high weight of listed companies owned by Chaebas in major indices, the continued growth in Chaibol's profits objectively helped the Indian stock market rise, and the large dividends provided by these listed companies are also sought after by investors.

Risk warning:

India's listed companies and the risk of inaccurate macroeconomic data or inappropriate statistics; direct investment is greater than indirect investment in overseas investment risks; fluctuations in political and business relationships caused by changes in power in the Indian government; and the side effects of the chaebol economy will gradually become apparent over the long term.