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China's Markets Cap at $7.7 Trillion in September, Second-Largest After U.S.

Belinda Zhou 2019-10-04 02:35 AM

The world's second-largest equity market after the U.S. saw its domestic funding market rebound to 55 trillion yuan ($7.7 trillion) by the end of September despite the depreciating currency, according to the Security Times, a stock analysis aggregator licensed by regulators.

By segment, the market value of the main board was 40.2 trillion yuan ($5.6 trillion), the board for small- and medium-sized companies wsa 9.2 trillion yuan ($1.3 trillion), growth enterprises market made 5.6 trillion yuan ($783.2 billion) and the science and technology board hit 0.6 trillion yuan ($83.9 billion), according to the report.

The market capitalization of listed domestic companies in China fell to $6.3 trillion in 2018 from $8.7 trillion in 2017, down 27.6% as reported by the World Bank. To compare, the total domestic market capitalization reached $68.7 trillion worldwide in 2018, with the United States holding $30.4 trillion - at five times the market cap of China.

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(China’s market capitalization of listed domestic companies accounts for 9% of the total volume worldwide,Source: World Bank)

As of February, more than 150 Chinese companies were listed on the Nasdaq, New York Stock Exchange and NYSE American exchange, as reported by Reuters. 

By region, Beijing led with market caps of listed companies at 22.6 trillion yuan ($3.2 trillion), followed by Guangdong Province in South China with 16.3 trillion yuan ($2.3 trillion) and Zhejiang in East China with 8.1 trillion yuan ($1.1 trillion.)

Top state-owned companies contributing to Beijing’s dominant market capitalization were the Industrial and Commercial Bank of China, China Construction Bank, China Mobile, Agricultural Bank of China, China National Petroleum Corp. U.S.-listed Alibaba Group Holding Ltd. (NYSE: BABA), based in Hangzhou, was China's most valuable company with a market cap of $441.6 billion, while Tencent Holdings Ltd. (HKEX: 0700) followed with $401.5 billion.

Licensed international institutional investors have been accelerating their participation in mainland China’s stock market as Qualified Foreign Institutional Investor since 2003. The foreign investment soared from less than 0.1% of total pool in 2003 to approximately 2% as of June in 2019, focusing on banking sector, according to Security Times.