China’s market capitalization (m-cap) increased 49% to $ 10.9 trillion during CY20, and now represents 10.5% of the global m-cap of $ 103 trillion. The country’s m-cap is now 4.3x that of India, whose m-cap rose only 17% to $ 2.5 trillion in CY 20th – 2.4% of m-cap global. The rift could have widened further if China had not halted the Ant Group’s $ 37 billion IPO.
The two countries were neck and neck in the m-cap contest until the end of 2006. China was a much larger economy at $ 2.75 trillion in 2006, while India stood at 940 billion dollars, according to World Bank data. However, its stock market was under-represented, with its “market cap to GDP” ratio of just 17 percent. By comparison, India’s figure was 82% in 2006.
China’s m-cap, however, jumped nearly 4x in 2007 to $ 3.8 trillion, leaving India far behind at $ 1.8 trillion. There was another surge in 2015, even as India’s m-cap has grown at a much slower rate over the past decade. The emergence of tech giants such as Alibaba and Tencent has contributed to the rise of China.
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