This means that the total market value of the two cities exceeded 70 trillion yuan, equivalent to 10 trillion yuan. The market value of a shares has surpassed the history and reached a new high point. What is the development space in the next five or ten years? The answer may lie in the leading indicators of the worlds major stock markets.
The second development space in the world
Throughout the world, the position of as stock market value is basically consistent with the position of Chinas economy in the world, which is the second in the world. According to the world bank database, when there are 3777 listed companies in 2019, the total market value of A-share is US $8.52 trillion, which is ahead of Japan and behind the United States.
According to choice data, when the number of A-share listed companies was 3777, it was in December 2019. This means that, at least by December 2019, a shares have become the worlds second largest stock market in terms of market value.
According to the world bank database, at the end of 2019, there were 3704 listed companies in the Japanese stock market, with a total market value of 6.19 trillion US dollars. According to the statistics of China Times reporters, the Japanese stock market suffered a big fall during the epidemic period this year, with the Nikkei 225 index falling by about 30%, which has just returned to the level close to the end of 2019.
Therefore, it is obvious that the target of a shares in the future to catch up with the market value is the US shares. The world bank database shows that the total market value of the latter is about 30.44 trillion US dollars. However, the reporter of China Times has noticed that this scale is already the data of 2018. But even two years ago, it was three times that of todays a shares.
In the past two years, U.S. stocks have been growing rapidly. On the one hand, the IPO scale is in the forefront of the world; on the other hand, the market value of the index and some individual stocks has also reached new highs. According to the statistics of China times, as of July 24, Beijing time, there were 5653 US stocks with a total market value of about 44.56 trillion US dollars.
Considering that there are multiple types of shares of the same company listed separately in the United States, such as Googles class A and class C shares, the above data are basically consistent with the official data of the two major exchanges. According to the official website data of the New York Stock Exchange, more than 2300 companies have been listed, with a total market value of 28.8 trillion US dollars; according to the data of NASDAQ Exchange, more than 2500 companies have been listed, with a total market value of 18 trillion US dollars.
This means that the current market value of a shares is less than a quarter of that of US stocks. There are many reasons behind this. For example, in terms of the number of listed companies, there are nearly 5000 listed companies in the US stock market, which is more than 3900 listed companies in A-share market. According to the world bank database, the total market value of the stock market ranks among the top 10 countries or regions in the world, and the number of listed companies also ranks in the top 10.
In addition, the three major U.S. stock indexes have gone out of the bull market in the past decade, and some stock market values have also reached record highs. Apple, Microsoft and Amazon are among the top three in the current U.S. stock market value. According to choice data, the total market value of the three companies is more than $1.5 trillion. The market value of Apple alone is almost equal to the sum of the top 10 current market value of a shares.
Several major U.S. technology stocks are benchmark companies around the world to catch up with. It should be noted that although the booming stock market in the United States has helped the countrys economic growth, it is the continuous progress of science and technology and innovation ability that really creates competitiveness. Behind the lack of technology giants of the same level in a shares is that Chinas technological innovation ability and industrial cultivation strength need to catch up with the United States.
According to choice data, as of July 24, 2020, several high-tech and pharmaceutical enterprises with the highest market value of A-share under the CSRC algorithm are Hengrui Pharmaceutical (503 billion yuan), Midea Group (466.7 billion yuan), Ningde era (438.5 billion yuan), Mindray medical (404 billion yuan), lichen Jingmi (370.8 billion yuan), Gree Electric (343.9 billion yuan), Hikvision (314.3 billion yuan), and Jinghu Gaogao China Railway (302 billion yuan), SF Holdings (282.7 billion yuan), industrial Fulian (281.4 billion yuan), etc. The gap between apple, Microsoft and Amazon is at least 20 times, and at most 40 times.
After nurturing world-class giants, they should also be able to keep them in a shares. According to choice data, Alibabas current market value is about 673.5 billion US dollars (equivalent to about 4.7 trillion yuan), which is the only Chinese enterprise to enter the top five value of the US stock market. In 2014, Alibaba, which has vie (variable interest entity) control structure and shares of the same share but different rights, was blocked from going public in Hong Kong and left for IPO in the United States.
A staggering 1338% in Hong Kong, China
The special historical, geographical and economic status has nurtured Hong Kong, China, as an international financial center. According to the world bank database, Chinas Hong Kong stock market ranked fourth with a total market value of US $4.9 trillion in 2019, far higher than that of some sovereign countries such as Saudi Arabia, France, India, Germany and Canada.
Behind the market value of nearly 5 trillion US dollars is the strength of Hong Kong market to attract more than 2000 domestic and foreign-funded enterprises to list in Hong Kong stock market. At the 13th Asian financial forum held in January 2020, Hong Kongs chief executive, Mrs Carrie Lam, once said that Hong Kongs IPO Financing in 2019 would reach nearly US $40 billion, leading the world in IPO Financing scale for the seventh consecutive year in the past decade.
China Times reporter noted that Chinas Hong Kong stock market has another data that surpasses the world. According to the world bank database, the ratio of stock market value to GDP in 2019 is as high as 1338.5%, ranking first in the world.
Mr. Li Xiaojia of the Hong Kong Stock Exchange talked about the data that he was proud of in public. On June 23, 2018, he said at the fourth innovation year of Yabuli Youth Forum: today, the overall market value of Hong Kong listed companies is more than HK $30 trillion, but Hong Kongs GDP is only more than HK $200 billion. This figure is very important. The ratio of the total market value of the capital market to GDP of general countries or regions is 1:1, while that of Hong Kong is 12:1-14:1. Hong Kong is a small body with a big hat on it A large number of cash strapped Chinese companies have been brought to Hong Kong.
At this meeting, Li Xiaojia summed up the two take-off of Hong Kongs capital market. In the past 20 years, Hong Kong has had two relatively large takeoffs. The first is that 25 years ago, there were basically only local companies, local investors and a small number of international investors in the Hong Kong market. However, the birth of H shares has attracted more foreign investors to Hong Kong, which is the first major reform of the Hong Kong stock market. This reform has transformed Hong Kong from a small regional market into a Chinese market, representing international investors.
The second take-off occurred after the HKEx missed Alibaba. In the past five years, we have felt more and more deeply that the source of goods in this market is basically the traditional economy, but we have been unable to attract enough new economy. There are a series of factors, but one of the most important is that we did not understand the Internet economy a few years ago. Li Xiaojia said in 2018.
With regard to the new economy, the HKEx has finally realized that money is not the core competitiveness of many enterprises. Talents, ideas, ideas, methods and other intangible assets have increasingly become the core driving force for the development of many enterprises. However, in the capital market and the governance mechanism of equity structure, there has never been a way to provide a position for the core driving force of the development of these companies. Therefore, the market has found such a system design - the same share with different rights.
In 2018, the Hong Kong Stock Exchange changed three things: first, allowing companies with the same share but different rights to be listed; second, allowing biotechnology companies to list without income; third, Greater China enterprises that have been listed in the United States and the United States can come to Hong Kong for secondary listing. In 2019, a shares also implemented policies on the science and technology innovation board, such as allowing different rights for the same share, releasing loss making pharmaceutical enterprises, and allowing dual listing.
Looking at the global stock market, Saudi Arabia, which ranks second in terms of the ratio of stock market to GDP, has a huge gap with Hong Kong, China. According to the world bank database, the ratio of the former is 303.5%. In addition, the United States ranked sixth with a ratio of 147.9%, Japan ranked eighth with 121.8%, Belgium, France, India, Germany and Canada were 59.2%, 84.9%, 75.8%, 54.6% and 112.9%, respectively.
Among the top 10 countries and regions in the world, only Belgium has a lower ratio than mainland China. According to the world bank database, Chinas A-share market value to GDP ratio is 59.4%, ranking 35th in the world. From this dimension, Chinas A-shares have a huge space for growth in the future. Although it may not reach the astonishing level of Hong Kong, China, it should be a development goal in the near future to move closer to the 147.9% level of the United States. In the process of gradually moving from 59.4% to 147.9%, Chinas A-shares are bound to undergo great changes. During this period, it is expected that a number of high-tech enterprises will develop rapidly and their market value will soar. Who will stand out? Source: China Times editor in charge: Yang Qian_ NF4425
Among the top 10 countries and regions in the world, only Belgium has a lower ratio than mainland China. According to the world bank database, Chinas A-share market value to GDP ratio is 59.4%, ranking 35th in the world.
From this dimension, Chinas A-shares have a huge space for growth in the future. Although it may not reach the astonishing level of Hong Kong, China, it should be a development goal in the near future to move closer to the 147.9% level of the United States.
In the process of gradually moving from 59.4% to 147.9%, Chinas A-shares are bound to undergo great changes. During this period, it is expected that a number of high-tech enterprises will develop rapidly and their market value will soar. Who will stand out?