Hong Kong lost its place as the fourth largest stock market to India last week, albeit temporarily.
India’s market capitalisation on January 22 was $4.33 trillion, compared to Hong Kong’s $4.29 trillion. The subsequent day saw a reversal. The narrowing gap between the two markets, to a large extent, was driven by Hong Kong’s decline led by a rout in Chinese companies, which has caused it to lose nearly $3 trillion in market capitalisation over the last few years. China’s economic woes and tensions with the West are playing out on Hong Kong’s bourses (chart 1).
