The term "Chindia", a combination of China and India, is being used by some economists as they gauge the economic performance of the two Asian juggernauts.

The rise of China and India will change the world economy and generate investment opportunities in the consumer, agricultural, industrial, banking and logistics sectors, the China Securities Journal quoted Jing Ulrich, managing director and head of markets in China with JP Morgan Chase & Co, as saying.

Her remarks were echoed by Timothy J Bond, analyst with Merrill Lynch & Co., who pointed out in a report that the Indian stock market had grown much faster than the Chinese market in recent years but the latter had enormous potential.

Jing Ulrich said overseas fund managers were looking at the two countries as key investment destinations following Chinese President Hu Jintao's state visit to India which ended November 23.

Ashburton, an asset management company based in Jersey, the United Kingdom, launched in November a Chindia Equity Fund that invests in Chinese and Indian companies, according to the newspaper.

The company decided to launch the fund as China is expected to grow at a rate of eight percent to 10 percent per year for a long period, while a growth rate of eight percent is projected for India, said fund manager Jonathan Schiessel.

He said consumer demand would grow exponentially in both countries, driven by an expanding generation with higher aspirations, offering investors tremendous opportunities.

China's economic growth mainly relied on investments and exports, while consumption provided great impetus to India's economy, said Jing Ulrich.

Investment and consumption contributed 43 percent and 40 percent of China's gross domestic product (GDP) in 2006, compared with 27 percent and 60 percent of India's GDP, according to her latest report.

The high savings rate of 45 percent in China led to a fast increase in investment and a decline in investment returns, while the opposite case in India made the country more favorable for overseas investors.

India needs better infrastructure, more investment and greater openness to foreign trade and investment, said Timothy J Bond, adding that China should encourage consumer spending and boost the service sector.

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