China and Hong Kong’s $5 Trillion Sell-Off: AMarket Shift Worth More Than India’s Stock Market

In a surprising turn of events, stocks in China and Hong Kong have seen a massive sell-off. The value lost,
nearly $5 trillion, is more than the entire market capitalization of the Indian stock market. This staggering figure has been accumulated over the past three years.

The sell-off in China and Hong Kong equates to a loss of $4.8 trillion in market capitalization since 2021. To put this into perspective, this amount surpasses the value of the entire Indian stock market.

Contrary to the downturn in China and Hong Kong, Indian stocks have been rallying. The optimism about the country’s growth has been a significant factor in this upward trend.

Despite a subdued global IPO market, research from EY showed that Indian stock exchanges had the most IPOs in 2023. This is indicative of the traction that Indian stocks have gained in recent years.

The sell-off in China and Hong Kong has not boded well for either region, especially when the National Stock Exchange of India has only grown during the same period. The NSE overtook the Hong Kong Stock Exchanges and Clearing to become the fourth largest in the world in January.

The contrast between the markets in China, Hong Kong, and India is stark. While the former two have seen declines, India’s market has been on the rise. This shift in market dynamics is a testament to the changing landscape of global finance.