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China's Stocks Worth 50% More Than Rest Of BRICS Combined
Thanks to the massive surge of speculative trading account openings, Chinese stocks are up 28% in the last month and a stunning 52% since China unleashed 'QE-Lite'.
This has sent the total market capitalization of China's stocks soaring relative to the rest of the BRICS.
In fact, Chinese stocks are now worth 55% more than Brazil, Russia, India, and South Africa combined... the most ever.
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It appears The PBOC needs to force delever again...
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What a bitch when you have just put all your money into Tier 4 real estate in China to find you should have invested in the Chinese stock market instead.....but.. but real estate ALWAYS goes up,
Manufacturing is salvation.
Reminds me of way back when (late 70's?) when the shares of Nippon Tel & Tel were worth more than the market capitalization of the entire S&P 500 or NYSE
I suggested to the head of equity that shorting NT&T going long S&P would be one hell of a great paired trade. Told politely to worry about bonds, not stocks.
Talking about Japan, we're startin' to get a lot like them economy wise and bond yields, eh?
Amazing thing is even the non-believers of the MSM status quo refuse to believe that rates are still headed lower..... and ... oh, never mind.
Sumptin's wrong out dere, Lucy!
We're beginning to hear the first mumurs of deflation. Soon it will be a deafening roar.
Putin could attack.
Or this could be about Angelina Jolie....
5's/30's keeps getting flatter. i'm not really a bond guy, but i can't imagine that is a good sign.
So very true Publicus, growing food is pretty useful too..
Manufacturing is salvation.
Almost as good as growing your own food but if nobody can afford to buy what you make..... still better than the US where all we 'make' these days is more money. How long before the rest of the world realizes what the dollar is REALLY worth? There comes a point in time where you can't force people to take your money with a gun
Then you just print some yuan, and now you got consumers.
I don't trust any stock market anymore and the Chinese are demonstrating they are as bad as we are.
This is proof that the price is exactly what the printers say it is. What a loony bin!
the whole world has gone mad. wouldn't mind an alien invasion just about now.
welcome to Inflating everything economy
This is the Chinese telling the tribe we can copycat your style tooo
It's a big Club and you ain't in it BITCHEZ
Cement, autos, plate glass, eletricity, the industrial northeast......
China is topping out their strategic reserve right now, watch what happens when they quit buying.
Really.... makes you wonder if there's ANY sane place left to 'invest'?
There's going to be a world-wide tsunami of wealth destruction when all these bubbles pop. Wonder how long it's going to take....
A generation
Never ceases to amaze me how long it takes for the merde to hit the fan... the housing bubble lasted for a decade longer than I thought possible.
What the hell... a generation will work for me - I'll be dead when it all hits if that's the case. Feel bad for my kids though they're (relatively) better off than their contemporaries.
Great... and Chinese citizens shit on the side of the road 50% more then rest of BROCS combined!
Over there it's called'night soil'.....
China is insulated from the rest of the world.
Not only the Chinese have things under control domestically but they have very wisely started diversifying and investing outside China over the last couple of years and we have seen major IPO's, major bond issues and major asset purchases worlwide without any disrimination to any region, religion, caste, creed, colour etc. (Their motto is simple: if you are in trouble: Call China).
Hence, all profits of Volvo, Peugeot, Motorola, AMC, Nexen, real estate in Toronto, NYC, Italy, US, Australia, Canada, Malaysia etc will now be flowing back into China which was not the case barely 5 years ago.
There is no logical reason why Chinese stock markets should crash.
I would suggest Zerohedge to compare stock market capitalisation of Shanghai with NYSE or FTSE or DAX and show it here. Let us see the reality and not just the index performance over a period of time.
While the NYSE market cap has risen from USD 11 trillion to USD 17 trillion between 2003 to 2013 which is a multiplier of 0.58.
The multiplier of Shanghai, Shenzen and various other Asian markets are 10 times more. And in many cases, these stock markets did not even exist a decade ago like Dubai or Saudi or Vietnam etc.
Kazakhstan has gone from USD 2,426m to USD 26,228m which is a multiplier of 9.81 between 2003 to 2013.
Shenzen is a multiplier of 8.49.
Philippines is 8.37.
Colombo is 5.93
and Shanghai is 5.93.
While Deutsche Borse was a multiplier of 0.79, Athens was actually negative and our friends at Nasdaq were 1.13 despite all the noise of Apple and FB.
All this indicates that while NYSE and Nasdaq have indeed grown a bit but the others are rising at such a fast speed that NYSE/Nasdaq/FTSE/DAX don't even have time to lick their wounds. The speed is simply ten times greater! May the force be with you!
The data was until year end 2013 so am sure today these numbers for Western economies are lower while Shanghai has risen!
Comparing market cap of Shanghai to BRIS is also unfair to BRIS mostly because S Africa's currency has declined 100% in last 5 years, India has declined 50% in last 5 years and Brazil too has declined about 60% in 4 years. While China's currency has APPRECIATED in last 5 years from about 7.00 to 6.22 today! Poor BRIS! It is not China's fault that BRIS cannot stand up on their feet because they aligned themselves to Western propaganda at most times in their economic history due to their inhereent weaknesses, awful corruption and allowing western corporations into their countries and let profits flow back to US and EU. The same cannot be said for China. Russia too, which is why they are in a bit of a turmoil at present time, thanks to western intervention.
Indices alone dont make no sense whereas the market capitalisation shows the breadth and the depth of the market and the fact that wealth is being distributed more equally and to more citizens thus creating robust employment as well as robust tax revenues for the Govt and hence more stability and not less stability.
All data comes from here: http://www.world-exchanges.org/statistics/annual-query-tool
I respectively beg to differ as to how stable China is going forward. China is suffering from massive overcapacity. Much of the recent growth in China after 2008 came from a massive 6.6 trillion dollar stimulus program that expanded credit and poured huge amounts of money into the system. This money encouraged expansion and construction with little regard as to real demand or need.
For years the people of China have had the habit of saving much of what they earn but the low interest rates paid at banks has not rewarded savers. With few investment options much of this money has drifted towards housing and driven housing prices sky high. The article below delves into how the economic efficiency of credit is beginning to collapse in China and the unwinding of China’s giant credit spree could be very painful.
http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html
Chinese Stock Market 2007 = 6092.
Chinese Stock Market 2014 = 3127.
"Nuff Said".
The more we hear about how the economy of China is slowing the more light will be reflected on just how strange their housing market really is. The importance of the housing market in China's economy should not be underestimated, this is where almost 75% of the country's household wealth is stored and it is deeply interwoven with shadow banking. Most Americans know little about this market and just how key it is to their economy. A close look at housing in China and the customs under which deals are completed will give Americans some real surprises.
Most bizarre is that legal protections and real estate standards are not yet well-established within the country. The various procedures and steps Americans take for granted when purchasing a property such as; due diligence, housing inspections, and secure escrow accounts simply do not exist. Below you can look deeper into the customs of this important market.
http://brucewilds.blogspot.com/2014/12/china-housing-market-customs-tad-bizarre.html
don't you mean "Priced Higher" rather than "worth more" ----big difference--