India’s stock market index, Sensex, has doubled in two years; China's stock market's index Shanghai Stock Exchange (SSE) has nearly tripled in last 10 months (since the beginning of this year).
P/E ratio of Indian stocks averages 25 while that of China is about 50.
China’s market capitalization $3.5 trillion is more than double of India’s $ 1.6 trillion.
China has five companies in the world’s top 10 companies by market capitalization while Indian companies are yet to enter the list. India’s biggest company by market capitalization, Reliance Industries Limited has recently crossed the $100b mark.
Industrial and Commercial Bank of China (ICBC) has replaced Citigroup from the top position in the banking sector. Three of the world’s top six banks are from China. These are ICBC, China Construction Bank and Bank of China. Chinese companies are now the world’s leader by market capitalizations in banking (ICBC), insurance (China Life Insurance), telecoms (China Mobile) and airlines (Air China).
Similar kind of trend was seen in 20th century when US companies replaced European companies in the list of world’s top companies by market capitalization.
Posts
No comments:
Post a Comment