China’s Market Value Overtakes Japan as World’s No. 2 (Update1)
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By Bloomberg News
July 16 (Bloomberg) -- China overtook Japan as the world’s second-largest stock market by value for the first time in 1 1/2 years, after government stimulus spending and record bank lending boosted share prices this year.
The Shanghai Composite Index rose 1.4 percent to 3,188.55 yesterday, sending the value of China’s domestic stock market to $3.21 trillion, compared with Japan’s $3.20 trillion. The Shanghai index has gained 75 percent this year, the best- performing major market, against a 7 percent advance in the Nikkei 225 Stock Average. The U.S. remains the world’s biggest stock market with a capitalization of $10.8 trillion.
“China is just entering its stride and is still very much in a growth phase, while Japan is already a developed economy,” said Daphne Roth, Singapore-based head of Asian equity research at ABN Amro Private Banking, which oversees about $14 billion.
China last surpassed Japan in stock-market capitalization from Jan. 4 to Jan. 24, 2008, data compiled by Bloomberg show. The Shanghai Composite tripled in the two years leading to its record on Oct. 16, 2007, before tumbling 72 percent to its trough the following November.
A government-led 4 trillion yuan ($585 billion) stimulus package and record bank lending has buffeted the Chinese economy against a plunge in exports. Foreign-exchange reserves topped $2 trillion for the first time, while money supply rose a record 28.5 percent in June from a year earlier, the central bank said July 15. The government is targeting 8 percent growth this year.
To contact the Bloomberg News staff on the story: Chua Kong Ho in Shanghai at [email protected]; Patrick Rial in Tokyo at [email protected]
Last Updated: July 15, 2009 21:04 EDT
Share | Email | Print | A A A
By Bloomberg News
July 16 (Bloomberg) -- China overtook Japan as the world’s second-largest stock market by value for the first time in 1 1/2 years, after government stimulus spending and record bank lending boosted share prices this year.
The Shanghai Composite Index rose 1.4 percent to 3,188.55 yesterday, sending the value of China’s domestic stock market to $3.21 trillion, compared with Japan’s $3.20 trillion. The Shanghai index has gained 75 percent this year, the best- performing major market, against a 7 percent advance in the Nikkei 225 Stock Average. The U.S. remains the world’s biggest stock market with a capitalization of $10.8 trillion.
“China is just entering its stride and is still very much in a growth phase, while Japan is already a developed economy,” said Daphne Roth, Singapore-based head of Asian equity research at ABN Amro Private Banking, which oversees about $14 billion.
China last surpassed Japan in stock-market capitalization from Jan. 4 to Jan. 24, 2008, data compiled by Bloomberg show. The Shanghai Composite tripled in the two years leading to its record on Oct. 16, 2007, before tumbling 72 percent to its trough the following November.
A government-led 4 trillion yuan ($585 billion) stimulus package and record bank lending has buffeted the Chinese economy against a plunge in exports. Foreign-exchange reserves topped $2 trillion for the first time, while money supply rose a record 28.5 percent in June from a year earlier, the central bank said July 15. The government is targeting 8 percent growth this year.
To contact the Bloomberg News staff on the story: Chua Kong Ho in Shanghai at [email protected]; Patrick Rial in Tokyo at [email protected]
Last Updated: July 15, 2009 21:04 EDT
