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A thing to remember in this are the sizes of the various markets. NYSE, the largest in USA, has a combined market value of 20 trillion dollars, whereas the lar
by chvid 11y ago
A thing to remember in this are the sizes of the various markets.
NYSE, the largest in USA, has a combined market value of 20 trillion dollars, whereas the largest in China (Shanghai Stock Exchange) has a combined market value of 4 trillion. This is for two economies of about the same size.
This means that when the Chinese market drops (or raises) the overall impact for the wealth of the country is much smaller than a similar change would cause in the American markets.
https://en.wikipedia.org/wiki/Stock_exchange https://en.wikipedia.org/wiki/Stock_exchange
- doyoulikeworms 11y agoWhile GDP (PPP) of China and USA are similar, this isn't the same as saying that their wealth is similar. The USA's net national wealth is about $85 trillion, while China's is about $22 trillion. I have a feeling that a much larger proportion of the USA's stock market is held by foreigners compared to China. It is possible that drops (or raises) in the Chinese market actually affect Chinese wealth more than in American markets... https://en.wikipedia.org/wiki/National_wealth https://en.wikipedia.org/wiki/National_wealth
- dmix 11y agoI'd be more interested in what percentage of the US stock market vs China is held by a tiny percentage of the population vs a broader public. Reductions in wealthy by a tiny minority has a smaller impact than the latter when looking beyond statistics.