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More Money Was Lost On Chinese And Hong Kong Stocks Since 2021 Than India's Market Capitalization

More Money Was Lost On Chinese And Hong Kong Stocks Since 2021 Than India's Market Capitalization
Since 2021, stocks in China and Hong Kong have sold off a whopping $4.8 trillion in market capitalization, which, according to HSBC, which exceeds the value of the stock market in India.
The National Stock Exchange of India has only increased during this same period, therefore the figure does not augur well for either China or Hong Kong.
According to data from the World Federation of Exchanges, the NSE surpassed Hong Kong Stock Exchanges and Clearing to become the fourth largest in the world in January. The total market value of all listed equities places it as the third largest in Asia.
This illustrates the extent to which Indian stocks have gained momentum in recent years, in contrast to falls in Hong Kong and China.
Mainland The CSI 300 index in China has decreased for the past three years in a row, concluding the previous year with losses of 11.4%. Even worse was the performance of Hong Kong's Hang Seng index, which ended 2023 13.8% down after experiencing its fourth straight fall. Last year, these two performed the worst out of all the main Asia-Pacific indexes.
Investors have been concerned about China's troubled real estate market, which has also impacted Hong Kong. The HKEX lists numerous Chinese real estate equities, such as Country Garden and Evergrande Group.
China established a growth target of 5% for 2024, but experts have doubted that the second-biggest economy in the world will reach that goal. China's GDP is predicted by S&P Global Ratings to increase by 4.6% in 2024, down from 5.2% in 2023, the rating agency stated last week.
“Our forecast factors in continued property weakness and modest macro policy support. Deflation remains a risk if consumption stays weak and the government responds by further stimulating manufacturing investment,” Louis Kuijs, Asia-Pacific chief economist at S&P Global Ratings, wrote in a client note.
In March, Nicolas Aguzin, the former CEO of HKEX, said that geopolitics, high interest rates, and a lack of trust in China are all having an effect on values and the amount of new listings on the exchange.
A general sense of optimism regarding the country's growth has resulted in a rally in Indian markets. The nation's primary Nifty 50 index has increased for eight years running, with gains of 20% in 2023.
Additionally, according to HSBC research, the National Stock Exchange of India has surpassed the Shanghai Stock Exchange to occupy the second place in the world in terms of monthly transaction volume. However, it still trailed behind the Shenzhen Stock Exchange, which topped the list.
According to EY India study, the majority of initial public offers (IPOs) took place on Indian stock exchanges in 2023.
That is in spite of the muted IPO market, particularly in Asia. According to EY, 220 IPOs in India last year brought in $6.9 billion in revenue. Deal activity has increased by 48% since 2022.
In a separate study report, George Chan, global IPO leader at EY, stated, "India has emerged as a standout performer, while China's market has significantly slowed down."
India accounted for just 6% of all IPOs worldwide in 2019, but as of the first quarter, according to Chan, the country currently accounts for 27%, "propelling it to the position of the world's leading IPO market by deal volume."
In comparison, according to EY data, 30 initial public offerings (IPOs) raised $3.4 billion in the first quarter on China's A-share market. Since 2020, there have been the fewest IPOs and the lowest proceeds. Only two of the ten Hong Kong initial public offerings (IPOs) over the three-month period exceeded $100 million in deal size, marking the lowest proceeds since 2010.

Christopher J. Mitchell

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