China’s stock market crash over the last few weeks has been widely documented. With a market decline of more than 30% from its high, China’s share of world stock market cap has suffered a dramatic fall. Below is a chart showing China’s share of world stock market cap (using Bloomberg data) going back to 2013. We have also included the United States’ share of world market cap over the same time frame.
After jumping to nearly 14% of total world market cap, China’s share has fallen all the way down to 9.6% as of today! China’s steep drop has resulted in a huge gain in share for the U.S., even though our markets here have been trending lower over the same time frame. When China’s share got up to 14%, the US had dipped down to 34%. As of today, the US share is back up to 36.4%.