Chapter 76 21. World stock market and capitalization

The China effect can be brought into full play!Under the global financial crisis in 2010, the Chinese stock market (Shanghai and Shenzhen) ranked third in the world with its market value of 2.208 trillion euros, after New York and Tokyo.Since 2006, the Shanghai Stock Exchange (SSE: Shanghai Stock Exchange) has been developing rapidly. By June 2008, it had surpassed London and ranked seventh in the world! The outstanding players in the Chinese stock market include: PetroChina, Sinopec, Bank of China, Industrial and Commercial Bank of China, China Merchants Bank, Bank of Communications, China Shenhua, China Life Insurance, China Ping An Insurance, China Pacific Insurance and so on.

As a new heavyweight star in the world's financial circles, it is enough to look at the market value of its banks and companies.By 2030, China's industry, trade, telecommunications, insurance and many other enterprises will climb to the top of the world. The world's top five banks in 2010: (unit: billion euros) 1National Bank market value>% 2 Industrial and Commercial Bank of China 17506 27.26% 3 China-UK HSBC 13283 94.86% 4 HSBC Bank of China (China) 13123 45.90% 5 JP Morgan Chase Bank 11142 64.20% 6 Bank of China 10592 29.37% If the Bank of China occupies the top five rankings in the world, the international ambitions of other Chinese companies are also gradually revealed: China National Fund Investment Group has a 10% stake (22 billion euros) in the US Blackstone Fund Investment Group; An Indispensable Partner of Barclays Bank!

Of course, Chinese industrial enterprises have also been actively participating in it without exception: for example, the oil giant PetroChina has become the world's largest with its market value of 242 billion euros, catching up with ExxonMobil of the United States! If the top 100 companies in the world are always dominated by the United States, then in terms of market capitalization, China's position will become more and more clear, and its development will be better and better: for example, the telephone operator China Mobile has jumped to the tenth place in the world; Enterprises such as Baosteel, a steel consortium, are also keen to invest.The Boston Consulting Group, a strategic consulting firm, predicts that the world leader in the future will be a superpower—China.

In the past three decades, China's economic growth rate has remained at 9.5% per year.If China continues to maintain an annual economic growth rate of 8%, then its per capita annual income can reach 30,000 euros by 2031, and it can catch up with the United States by 2040. Given its sheer population, and taking into account the real GDPs of other big countries, China's heights have not been easy.After three years of rapid growth, by 2009 China's annual average GDP had surpassed that of India and Brazil, ranking first. Real GDP Growth: Three Year Average Annual Growth Rate China 11.19%

India 8.83% Brazil 4.93% Switzerland 3% European Union (27 countries) 2.29% US 1.73% Japan 1.22% Within the predictable range in the future, the above economic growth trend will continue, and will continue for a long time.For example, China maintains an economic growth rate of 8% to 9%, while that of the United States is maintained at around 1.5% to 2%.Of course, it is also necessary to take into account that the renminbi appreciates by 4% per year compared to the original, and its inflation rate is 4%, while the US inflation rate is 2%. China will climb to the top of the world by 2020

By 2015 or 2017 China will overtake the US! According to a report by PricewaterhouseCoopers (PwC), China, as one of the most economically powerful countries, is expected to overtake the United States in 2018, which is mainly due to the financial crisis - which has accelerated the transfer of power centers to emerging countries. In its report, the agency calculated that between now and 2020, the combined gross national product of the world's seven largest developing economies will exceed that of the G7. According to PwC Studio, the seven countries are: China, India, Brazil, Russia, Mexico, Indonesia and Turkey.These countries have emerged from the economic depression that afflicted developed countries.Changes in the world economic order are inevitable, and the center of gravity of world finance will shift to Asia, especially China!