Friday, February 12, 2010

China Surpasses Japan's Stock Market Value in 2009

The chart above shows 2009 year-end stock market capitalization for the 14 largest stock markets based on data available from the World Federation of Exchanges.

1. I'm pretty sure that this is the first time ever that China's stock market ($3.57 trillion) has surpassed Japan's ($3.31 trillion) by total market capitalization.

2. It's also interesting that China, India and Brazil now account for 16% of the world stock market value. It was not too long ago that those three countries accounted for less than 1% of world stock market value. In 2003, those countries represented only 4.2% of world stock market value.

3. The United States stock market has the same value ($15.08 trillion) of the next five stock markets combined: China, Japan, Euronext, U.K. and India, and accounts for 32% of total world stock market value.

4. China has the same stock market value ($3.57 trillion) as Germany, Australia and Switzerland combined.

7 Comments:

At 2/12/2010 10:00 PM, Anonymous Anonymous said...

China Surpasses Japan's Stock Market

Check back on Monday.

 
At 2/12/2010 10:05 PM, Anonymous Anonymous said...

Does one country surpassing another country on "stock market value" mean anything when corporate debt/equity structures vary between countries.

I mean, German firms use bank borrowing and not as much stock. And, some countries, like China, have state owned enterprises (SOE) which are not counted because there is no public equity. Same issue for eastern europe and Russia.

 
At 2/13/2010 5:29 AM, Anonymous Titus Pullo said...

China, India and Brazil are now 16% of the world's stock market after being just over 4% seven years ago? I smell tulips!

 
At 2/13/2010 9:19 AM, Blogger pkd said...

Tulips on steroids. Chinese accounting is opaque, even aside from multipronged government interference and corruption.

 
At 2/13/2010 12:05 PM, Anonymous gettingrational said...

There are exchange traded funds that hold "Red Chip" Chinese companies listed on the Hong Kong Exchange. The Hong Kong exchange is more transparent then the Shanghai exchange.

Here is an article that gives some background on investing in China trhough ETFs: Article

 
At 2/14/2010 1:47 AM, Blogger sethstorm said...


There are exchange traded funds that hold "Red Chip" Chinese companies listed on the Hong Kong Exchange.


That doesn't make them any more transparent. They're still beholden to the PRC and its practices.

 
At 2/14/2010 11:12 AM, Anonymous gettingrational said...

@ Sethstorm, "That doesn't make them any more transparent. They're still beholden to the PRC and its practices.

Transparancy is a relative term.

Beholden to the PRC and its practices is very true but might provide enterprise margins of success because of party guarantees.

 

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