Market Overview

RWM Holdings Reports Japan Outperforms China, Earns Second Biggest Stock Market Position in the Global Arena


RWM Holdings Reports Japan Outperforms China, Earns Second Biggest Stock Market Position in the Global Arena

PR Newswire

TOKYO, Aug. 6, 2018 /PRNewswire/ - Thursday's drop according to RWM Holdings research and analysis department left Chinese equities valued at only $6.09 trillion. Japan in contrast, closes with $6.17 trillion, while the U.S lead the stock market total valuation a little over $31 trillion.

It was in the latter part of 2014 when China successfully overtook Japan's market, by 2015 equities rose to a staggering $10 trillion. The same cannot be said this year, for amidst a trading disagreement with the U.S., China's declining currency and equities had taken a hit as a result of a slowly declining economy and a campaign to reduce debts.

According to Okawa Morie "Dropping below Japan is the result of the trade war." As Chief Finance Officer of Japan's RWM Holdings, Morie further explains "China has seen its market cap slump from its peak this year while Japan is relatively more stable around the current level"

As of this year the Shanghai Composite Index has already suffered a 17 percent drop, meaning amongst one of the worst performers of 2018. The 20 percent drop on the CSI 300 Index of subgauges has solidified China's tech and industrial stocks as the worst performers to date.

Policy makers on Tuesday composed of 25 senior leaders of the Communist Party enforced primary support on economic growth notwithstanding risks involved in the trade standoff and deleveraging campaign.

Kuramoto Hisayuki, Director of Research for RWM Holdings believes "The market during the next few months should remain at current low levels" Hisayuki nonetheless still expects a quick turnaround and recovery that will take China back to its No. 2 ranking.

For some, losing the ranking may seem trivial, the loss is however a reminder that China is still unable to hold its own economically amongst the global financial sector. Opening up limits in investment sectors from agricultural industries to banking has become the main focus of policy makers in the country. Furthermore, it should be noted that bonds and equities related to foreign ownership still ranks low. According to information gathered from the Society for Worldwide Interbank Financial Telecommunication the yuan, in terms of international payments has gone down to 1.81 percent from 1.88 percent between May and June of 2018.

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