Amid escalating India-China tensions, New Dehli could cut some slack for Hong Kong investors by reportedly cutting scrutiny on deal flows.
Hong Kong-based investors in deals with India could face less scrutiny if Chinese companies are not involved in the transaction, according to a «Bloomberg» report citing unnamed sources, though discussions are still in the early stages. This is a reversal from a «Reuters» report in April this year that claimed that no distinctions would be made between China and Hong Kong investments, citing two unnamed Indian government officials.
Currently, there are more than 140 proposals valued at $1.75 billion including those from China and Hong Kong that are being delayed due to India’s decision to tighten investment rules against the second-largest economy amid rising tensions.
Following a border conflict with China, India has responded by banning dozens of apps including WeChat and TikTok, tightening visa rules for Chinese nationals and imposing curbs on Chinese firms bidding for government contracts.
