Hong Kong equity market rebounds, regains 4th position as the largest market from India

Hong Kong has regained its position as the fourth largest equity market in the world surpassing India. As per data compiled by Bloomberg, Hong Kong's market capitalisation stands at $4.9 trillion versus India’s $4.75 trillion.

India vs Hong Kong m-cap

In January, India overtook Hong Kong as the fourth largest share market in terms of m-cap globally for the first time. India's m-cap crossed $4 trillion for the first time on December 5, 2023.

The rise in India's m-cap was aided by a rapidly growing retail investor base, sustained inflows from foreign institutional investors (FII), strong corporate earnings and robust domestic macroeconomic fundamentals.

Also Read: India now ranks fourth globally in stock market capitalization, surpassing Hong Kong

Meanwhile, Hong Kong's market recorded a four-year losing streak in 2023 and another 10% fall in 2024. However, from the 2024 lows, both Chinese and Hong Kong markets have rebounded over 12%, following a lift in investor mood due to the authorities effort to elevate the economy.

China and Hong Kong stocks rose on Monday as the yuan rebounded sharply against the dollar, propped up by suspected selling of dollars by state-owned banks.

China's inflation rate and the central government's debt burden are relatively low, leaving room for further macro policy steps, Premier Li Qiang told an audience of global CEOs and Chinese policymakers on Sunday.