China’s market capitalisation (m-cap) grew 49 per cent to touch $10.9 trillion in CY20, and is now 10.5 per cent of the global m-cap of $103 trillion. The country’s m-cap is now 4.3x India’s, whose m-cap grew just 17 per cent to $2.5 trillion in CY20 — 2.4 per cent of the global m-cap. The gulf could have widened further had China not halted Ant Group’s $37-billion IPO.
The two countries were neck-and-neck in the m-cap sweepstakes till the end of 2006. China was a much bigger economy at $2.75 trillion in 2006, when India stood at $940 billion, according to World Bank data. However, its stock market was under-represented, with its ‘market cap-to-GDP’ ratio at just 17 per cent. In comparison, the figure for India stood at 82 per cent 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 grew at a much slower pace over the past decade. The emergence of tech giants such Alibaba and Tencent has aided China’s rise.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
First Published: Sat, January 02 2021. 01:28 IST
read the full story about Dragon races ahead as gulf between China and India market caps widens
#theheadlines #breakingnews #headlinenews #newstoday #latestnews #aajtak #ndtv #timesofindia #indiannews