Thursday, January 17, 2008

China market takes No 2 Global Spot at $4.72 trillion

China has leapfrogged past Japan to take over the No 2 spot as the second largest stock market in the world after US in terms of capitalization thanks to all the mega listings and robust trading.

Here are the top 10 largest stock exchanges in the world according to a recent data released by Bloomberg :

1. US - $16.93 trillion
2. China - $ 4.72 trillion
3. Japan - $ 4.39 trillion
4. Britain - $3.81 trillion
5. France - $2.65 trillion
6. Hong Kong - $2.53 trillion
7. Germany - $2.13 trillion
8. India - $1.83 trillion
9. Canada - $1.68 trillion
10. Australia - $1.38 trillion

China has been enjoying tremendous growth and for the past years coupled with flood of large-scale IPOs including PertroChina (the 1st trillion dollar company by market cap) and others had helped its market cap soar. As most of the shares are still locked up, the market cap figure isnt a true reflection of its true market value. In reality, the real value will start to decline once the non-tradable state-owned shares get unlocked in the near future as the overall share prices will be diluted. Nobody can estimate the severity of the size of the selldown but it will eventually.

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