According to the Financial Times [in Bourses in China eclipse all of Asia
(May 9, 2007)]: "The value of shares traded on China’s stock markets on Wednesday was greater than the rest of Asia combined – including Japan – helping the benchmark index to breach the 4,000 mark for the first time. Analysts said this was almost certainly the first time that turnover at the Chinese bourses had exceeded that of the rest of Asia." (Although, it should be noted, that the Chinese stockmarkets in Shanghai and Shenzhen are still substantially smaller than the markets in Japan, the UK, and the US, in terms of market capitalisation.)
This is more evidence for some of the comments I made in previous posts on China's financial sector ... the latest post being Makings of a Chinese Stockmarket Bubble?
(April 29, 2007). A financial bubble (that bursts ... as they invariably do) in China could have devastating consequences for markets (and economies) of other countries (including the US, the UK, and Europe). It's definitely worth keeping an eye on developments in China.
Labels: bubble, China, Chinese stockmarket, finance, investing