Economic News

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Chinese companies skyrocket in price

Tue Oct 13, 2020
watermark Economic news

The aggregate capitalization of Chinese companies reached $10 trillion for the first time since 2015. Experts note that the local stock market has skyrocketed in value, including due to the policy of the Chinese authorities to promote exchange trading and strengthen the yuan. The growth drivers were also the IPOs of several Chinese companies and last year's launch of the Shanghai STAR exchange.

Since March 2020, the total market value of shares in the Chinese market has risen by $3.3 trillion. This allowed China to gain a foothold in the second place in the world in terms of capitalization, behind the US stock market ($38 trillion) and surpassing the markets of Japan ($6.3 trillion) and Hong Kong ($5.9 trillion).

It is worth noting that Hong Kong has the status of a special administrative region of China and does not fall under many of the restrictions imposed on the mainland. In this regard, Hong Kong is often used by Chinese companies to go public and attract investments from abroad.

Top Top