Tweet

Staggering Data on Growth in Chinese Markets

Written by: Paul Kedrosky

Article Overview: The growth in Chinese stock markets -- and the Chinese economy in general -- continues to be fairly staggering:

Staggering Data on Growth in Chinese Markets

The growth in Chinese stock markets -- and the Chinese economy in general -- continues to be fairly staggering:

China's stock market topped $1 trillion for the first time and the yuan rose past the Hong Kong dollar, reflecting an economy that's grown 10-fold since Deng Xiaoping opened the Communist nation to international investment in 1978.
The value of shares on the Shanghai and Shenzhen stock exchanges more than tripled in the past year and reached $1.01 trillion as of yesterday's close, according to data compiled by Bloomberg. The yuan climbed to more than 1 per Hong Kong dollar today for the first time in 13 years.

Economic growth has averaged 9.6 percent in the past five years, driven by record trade surpluses that pushed China's foreign-exchange reserves to $1 trillion. That's prompted U.S. and European pressure for a more flexible yuan and made China's stocks the most expensive relative to earnings in Asia.

... China's economy grew 10.7 percent in the first nine months of last year after overtaking the U.K. and France in 2005 to become the world's fourth largest. The government is scheduled to announce 2006 growth figures on Jan. 25.

... After tripling in size, China's stock market capitalization is equal to 46 percent of the $2.2 trillion economy. The U.S. market is equivalent to 126 percent of its economy, while the ratio for Hong Kong is 649 percent, according to Bloomberg data.

The last factoid caught me by surprise. Despite trading at 34 times earnings, Chinese stock markets are still a relatively small percentage of GDP. There are many ways to look at this, of course, some much more bearish than others, including currency-related and the State's still large role in the Chinese economy.

[via Bloomberg]

Related Articles
  II.D. Foreign Direct Investment: TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA
  Marcus Asay An overview About Chinese Economic Development
  The China Bubble Thing
  IV. C. Private Contractors and Builders: THE ROLE OF THE PRIVATE SECTOR
  BIOPRENEURS BITES from California Takshila University

Article Tags: 13 years, asia china, bloomberg, chinese economy, chinese stock markets, communist nation, deng xiaoping, economic growth, factoid, first nine months, foreign exchange reserves, hong kong dollar, international investment, s market, shenzhen, stock exchanges, stock market capitalization, trade surpluses, trillion, yuan



Related Forum Posts
O;lympics ... may...be good for me - Since I've got a sports webzine I think I'll start doing some articles about this (I haven't up til now, being concerned with maximizing the NCAA tournament first), and see if that builds up my readership. On a personal note, I say let the Olympics go ahead, let people around the world see how the Chinese live, let the Chinese people see how everyone else in the world lives, and the government of China will be forced by that - rather than this unfortunate Tibet protests - to mend their ways. Not that I'm trying to minimize what is happening and has happened to Tibet... it's interesting that only now do a lot of people care... or is it that only now are a lot of people being covered by the media?
Exporting from China - Hi napoleon, How did your search for the Chinese manufacturer go?
Walmart - Hi there, It is amazing to hear that news. I am in the UK. Some five years ago Walmart bought ASDA Superstores. We do most of our shopping there. So I have a little interest in Walmart. Eearlier this year I spend a few weeks in the US. I visited Walmart on several occasions. I was impressed, as they have one section for Massive Bulk Purchases. One needs a registration for that priviledge. Are other Markets doing the same? Is that a growing section? It is quite natural that there are competitors. Kindest Regards Beat "Unlock People's Potentials!"
Re: Looking for Business associates in "Online Tutoring" - I worked in a similar business before focusing on helping teach Chinese students in America how to improve their English. I am not looking at this time but if I end up in the UK I would like to hear more because I like what you are doing.
Re: Ideas For Business - Hello Lucy, you may consider this list for Ideas for Business: (Top 23 list) Rank Company 1 Google 2 Genentech 3 Wegmans Food Markets 4 Container Store 5 Whole Foods Market 6 Network Appliance 7 S.C. Johnson & Son 8 Boston Consulting Grp. 9 Methodist Hospital Sys. 10 W.L. Gore & Associates 11 Cisco Systems 12 David Weekley Homes 13 Nugget Market 14 Qualcomm 15 American Century Invest. 16 Starbucks Coffee 17 Quicken Loans 18 Station Casinos 19 Alston & Bird 20 QuikTrip 21 Griffin Hospital 22 Valero Energy 23 Vision Service Plan


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Stress: What Causes It and How To Deal With It

Halloween Howl Seven by Author Paige Agnew

Intro to Search Engine Optimization

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.