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在线翻译:
szdaily -> Markets -> 
China not world’s second-largest stock market any more
    2018-08-06  08:53    Shenzhen Daily

CHINA just lost its ranking as the world’s second-largest stock market.

After a Thursday slump, Chinese equities were worth US$6.09 trillion. That compares with US$6.17 trillion in Japan. The United States has the world’s largest stock market at just more than US$31 trillion.

China’s stock market overtook Japan’s in late 2014, then soared to an all-time high of more than US$10 trillion in June 2015. Chinese equities and the nation’s currency have taken a beating this year amid a trade spat with the United States, 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 17 percent in 2018 to be among the world’s worst performers. Industrial and tech stocks have been among China’s worst performers, with those subgauges on the CSI 300 Index of large caps sliding more than 20 percent this year.

“The market will likely continue to hover at low levels for the next couple of months,” said Linus Yip, Hong Kong-based strategist with First Shanghai Securities Ltd. “But there’s still a chance that China’s stock market will recover with total capitalization ascending to the world’s No. 2 place again. After all, the economic fundamentals are still stable and growth momentum will resume after a short-term downturn.”

Losing the No. 2 spot is a reminder that China’s role in global financial markets — while large — still doesn’t match its economic might. Policymakers have pledged to open areas such as investment limits on industries from banking to agriculture, but foreign ownership of equities and bonds remains low. The yuan’s share of global payments fell to 1.81 percent in June from 1.88 percent a month earlier, according to data from the Society for Worldwide Interbank Financial Telecommunication.

While Japan’s benchmark Topix index has declined more than 4 percent this year, it remains one of the better-performing markets in Asia.

(SD-Agencies)

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