ID :
197206
Tue, 07/26/2011 - 08:51
Auther :
Shortlink :
https://oananews.org//node/197206
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China's stock market cap may top US$12.4 tln in 10 years
HONG KONG, July 26 (Yonhap) -- China's stock market capitalization may exceed US$12.4 trillion in 10 years as the world's No. 2 economy continues its efforts to globalize its financial markets, the bourse operator said Tuesday.
China overtook Japan last year as the world's second-biggest stock market in terms of capitalization. The combined capitalization of China's two bourses, the Shanghai Stock Exchange and the Shenzhen Stock Exchange, totaled about $4 trillion.
Zhang Yujun, president of China's state-owned Shanghai Stock Exchange, said the country's total market cap will likely reach 80 trillion yuan or higher by 2020.
The expected launch of the "international bourse," on which shares in companies with foreign capital can be issued and traded, and of the cross-market exchange-traded fund (ETF) will spur the country's stock market to grow further, he said. An ETF is a type of investment company whose investment objective is to achieve the same returns as a particular market index.
The president said encouraging more foreign companies to issue yuan-based bonds will also help the Chinese stock market expand.
"A stable process of globalization will boost the status of Shanghai as a global financial hub," Zhang said.
Goldman Sachs predicted that China could overtake the U.S. in terms of stock market capitalization by 2030. China could see its stock markets account for 28 percent of the total global equity capitalization in the next two decades, up from 11 percent in 2010.
The two U.S. stock exchanges, the New York Stock Exchange and the Nasdaq Stock Market, had a total market capitalization of $15.3 trillion last year, accounting for 32.8 percent of the total global stock market value.
China overtook Japan last year as the world's second-biggest stock market in terms of capitalization. The combined capitalization of China's two bourses, the Shanghai Stock Exchange and the Shenzhen Stock Exchange, totaled about $4 trillion.
Zhang Yujun, president of China's state-owned Shanghai Stock Exchange, said the country's total market cap will likely reach 80 trillion yuan or higher by 2020.
The expected launch of the "international bourse," on which shares in companies with foreign capital can be issued and traded, and of the cross-market exchange-traded fund (ETF) will spur the country's stock market to grow further, he said. An ETF is a type of investment company whose investment objective is to achieve the same returns as a particular market index.
The president said encouraging more foreign companies to issue yuan-based bonds will also help the Chinese stock market expand.
"A stable process of globalization will boost the status of Shanghai as a global financial hub," Zhang said.
Goldman Sachs predicted that China could overtake the U.S. in terms of stock market capitalization by 2030. China could see its stock markets account for 28 percent of the total global equity capitalization in the next two decades, up from 11 percent in 2010.
The two U.S. stock exchanges, the New York Stock Exchange and the Nasdaq Stock Market, had a total market capitalization of $15.3 trillion last year, accounting for 32.8 percent of the total global stock market value.
