A significant portion of Hong Kong’s market cap is due to companies from Mainland China choosing to list in the city.
Samie Modak reports.
Photograph: Amit Dave/Reuters
The gap between market capitalisation of Hong Kong and India has dwindled significantly.
At present, India’s market cap stands at approximately $4.3 trillion, while Hong Kong’s is around $4.7 trillion.
In the depths of the Covid-19 crisis in March 2020, Hong Kong’s market cap, at $4.6 trillion, was 3.44 times larger than India’s.
On March 24, 2020, India’s market cap plummeted to a low of $1.33 trillion but since then, it has surged 3.5 times, positioning India as one of the best-performing markets globally in the post-pandemic era.
A significant portion of Hong Kong’s market cap is due to companies from Mainland China choosing to list in the city.
This year, Hong Kong’s market cap has contracted by 12 per cent, while India’s has soared by more than 25 per cent.
In the meantime, total global market cap has increased by 12 per cent to $110 trillion, according to data from Bloomberg.
India’s share in the global market cap is currently at a high of around 3.8 per cent.
At the post-Covid peak, Hong Kong’s contribution to the global market cap was about 7.5 per cent.
If India surpasses Hong Kong, it will rank fourth in the hierarchy of the world’s largest equity markets.
Currently, the US, with a market cap of nearly $50 trillion, ranks first, followed by China with a market cap of $9.5 trillion, and Japan at $6.1 trillion.
