CHINA’S domestic equities are worth more than US$10 trillion for the first time since 2015, when a crash erased half the market’s value in months.

The world’s second-largest stock market has added US$3.3 trillion since a low in March, helped by the government’s policies to encourage trading, a flurry of new listings that arrived with eased rules and the strengthening yuan.

Stocks have been close to the US$10 trillion milestone since July, when the government acted to tame a speculative rally that had suddenly pushed a gauge of large caps near a 12-year high.

The country’s total market capitalization is now US$10.04 trillion and just shy of the all-time high, according to data compiled as of Monday.

“It’s a meaningful number, especially coming after a pause in the stock rally,” said Hao Hong, chief strategist for Bocom International in Hong Kong. “It’s possible China’s market value can expand faster now that market reforms like the registration-based IPO system are in place.”

The United States has the world’s most valuable equities market at US$38.3 trillion. Japan is No. 3 at US$6.2 trillion.

Chinese shares surged over the summer as margin debt climbed at the fastest pace since 2015 and turnover soared. (SD-Agencies)