Hong Kong wins back title as Asia’s second-largest stock market by body slamming Japan
- Last time Hong Kong market was more valuable than Japan was in April 2015
- Hang Seng has shot up 16 per cent this year – almost double that of the Nikkei 225 gauge
Hong Kong has unseated Japan as the second-most valuable stock market in Asia.
The combined market capitalisation of stocks trading on the city totalled US$5.78 trillion on Tuesday, eclipsing that of US$5.76 trillion for Japan, according to data compiled by Bloomberg.
Hong Kong added US$937 billion of market value this year, compared with an addition of US$371 billion for Japan, as its benchmark Hang Seng Index entered the bull-market territory last week. The city’s stocks have been buoyed by rosy sentiment in the mainland-trade stocks, the world’s best performer this year, and optimism that China’s economic growth will bottom out in the middle of the year.
The Hang Seng Index has risen 16 per cent this year, almost double the gain on the Nikkei 225 gauge. Chinese social-media juggernaut Tencent Holdings contributed the most to the gain on the benchmark this year, with the stock alone accounting for 14 per cent of the index’s rise, Bloomberg data showed. AIA Group and Ping An Insurance Group of China were ranked second and third places.
The last time Hong Kong’s market was more valuable than Japan dated back to April 2015. It held onto the edge for only two months before quickly losing out.
China is currently the biggest equity market in Asia with a market cap of US$7.6 trillion, with the solid edge over Hong Kong and Japan. The US is still the No. 1 in the world, capitalising at US$31.3 trillion, followed by China and Hong Kong.