Global Equity Market Caps: U.S. Loses Ground to China

The percentage of global market cap that U.S. equities make up has fallen from 35% at the start of 2007 to 28.35% at the moment. At the start of 2007, China made up just 1.89% of global market cap, ranking 12th out of the top 18 countries. Chinese equities currently rank second and make up 8.12% of global market cap! China is followed by Japan, the UK, France and Hong Kong.

Over the past year, there has been a significant shift in these numbers. Developed countries like the U.S., Japan, the UK and France have all suffered at the expense of China, India, Hong Kong and Brazil -- all considered "emerging."

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Largest Stocks in the World -- Citi Falls Off the Charts

Back in October, we highlighted a list of the largest companies in the world by market cap. Just three months ago, Citigroup (C) was the 13th largest company in the world. Now the company doesn't even crack the top 50 (currently ranks 51st).

After another IPO in Shanghai in November, PetroChina (PTR) became the largest company in the world and made headlines as the first trillion dollar company. While it still ranks number one in its quest for global dominance, it has lost quite a bit of its value since then and is now worth just under $700 billion. PetroChina is followed by Exxon (XOM), General Electric (GE) and Gazprom.

To be fair to Citi, HSBC (HBC) and Banc of America (BAC) also dropped off the top 25 list. At financial stocks' expense, Wal-Mart (WMT) and Johnson & Johnson (JNJ) moved into the top 25, while Google (GOOG), Berkshire (BRK.A) (BRK.B) and Procter (PG) were able to move higher up the list. Google is currently the 18th largest company in the world.

Poor Citi.

Comments

[Philly Jim:]

Let's all roll-over for the communists! High rises, cell phones, condos, cars, money - who needs patriotism in the new world!?!

Money owes allegiance only to that which makes it grow.

If money continues to shift out of the West at this rate, in ten years Europe, U.K. and North America will start seeing brothels pop-up on every street corner like you see now in Asia. Bird-flu is the only card the West can play to win this game.

2008 Jan 16 06:19 PM

[pseydocyst:]

damn, this is scary

2008 Jan 16 10:53 PM

[User 141029:]

Bank of China Ltd, do you mean:finance.yahoo.com/q?s=... ? It's p/e is around 18 now.

2008 Jan 16 11:43 PM

[huangthomas:]

Don't rush to the door without your overnight pack! It all comes down to the market valuation of the stocks. The same stocks, In China, P/E is 50 to 70; in US, 15 to 20. If you equalize the valuation, there is nothing scary about the scenario! Calm down America!

2008 Jan 17 02:02 PM

[User 28937:]

I’m sure the “devil is in the details” holds true to this comment.

If you buy into the hype around fundamental indices (which i do), I would want to see how much the china market has in pure cash flow (top line and free cash flow) versus profits (net and operating) on both a top and company level. My bet….china’s share makes up less than 1% of the world.

I realize stock sell on future expectations…but please…besides..china is headed for a civil war. The cowboy capitalism of the last few years cannot be extrapolated out indefinitely.

am i right eric?

2008 Jan 30 12:21 PM

[User 142738:]

China is hellbent on photocopying the successes -- and shortcomings -- of the United States. They're rationing gasoline and fixing food prices in a futile 1970's-style inflation war.

Also, the two-letter abbreviation for China is "CN"; "CH" is Switzerland. I was a bit confused.

2008 Feb 05 09:21 AM