China overtaken by Japan in stock market rankings, in slump blamed on trade war
‘But there’s still a chance that China’s stock market will recover…. After all, the economic fundamentals are still stable and growth momentum will resume’
Shanghai — China just lost its ranking as the world’s number two stock market. After a slump on Thursday, Chinese equities were worth $6.09-trillion, according to data compiled by Bloomberg. That compares with $6.17-trillion in Japan. The US has by far the world’s largest stock market, at just over $31-trillion. China’s stock market overtook Japan’s in late 2014, then soared to a record high valuation of more than $10-trillion in June 2015. Chinese equities and the nation’s currency have taken a beating this year amid a trade spat with the US, a government-led campaign to cut debt and a slowing economy. "Losing the ranking to Japan is the damage caused by the trade war," said Banny Lam, head of research at CEB International Investment Corp in Hong Kong. "The Japan equity gauge is relatively more stable around the current level but China’s market cap has slumped from its peak this year." The Shanghai composite index has lost more than 16% in 2018 to be among the world’s worst perform...
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