India Announces Time-Limited Zero Tariff! Chinaamc Msci India Etf (03404.HK) Rebounds in Afternoon Trading, Surging Over 1.5%

NewTimeSpace News–Recently, the Indian government announced a significant tariff exemption policy, implementing zero tariffs for approximately three months on 40 key petrochemical products. This marks a rare tax reduction move by India in the field of basic industrial raw materials in recent years. Boosted by this news, the Indian stock market rose in afternoon trading, with Chinaamc Msci India Etf (03404.HK) gaining over 1.5%.

According to Notification No.12/2026-Customs issued by India's Ministry of Finance, this zero-tariff coverage spans four core categories: basic chemical intermediates, general-purpose plastics, engineering resins, and industrial rubber.

Hong Kong Stock Exchange data shows that Chinaamc Msci India Etf (03404.HK) tracks the MSCI India Net Total Return Index, MSCI's flagship index designed to measure the combined performance of large-cap and mid-cap Indian stocks. Using free-float market capitalization weighting, it covers approximately 85% of India's investable equity market capitalization, currently comprising 158 constituents.

Notably, since its 2001 base date, the index has demonstrated high volatility and high growth characteristics: as of end-July 2025, its 22-year annualized net return stood at approximately 12.9%, with cumulative gains exceeding 28-fold, while annualized volatility was around 22% during the same period.

Estimates indicate India's annual PVC demand at approximately 4 million tons, against domestic production capacity of merely 1.59 million tons, requiring over 2 million tons of imports and showing high external dependence. India's PVC demand structure closely matches China's, dominated by general-purpose SG-5 resin, which highly overlaps with the main product of China's calcium carbide-based PVC. Leveraging geographical advantages, price competitiveness, and supply reliability, China holds a significant market share in India.

In 2025, China's total PVC exports to India reached 1.5141 million tons, up 13.62% year-on-year, accounting for 39.60% of China's total PVC export volume (3.8232 million tons), making India the largest core market for Chinese PVC exports.

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