China stock marketChina could overtake the U.S. in terms of stock market capitalization by 2030, a report by Goldman Sachs says, according to the Financial Times. The world's most populous country has already surpassed Japan to become the second-largest economy. With China's economic growth at 10.3% when developed nations, including the U.S., are still struggling, this long-term prediction doesn't sound that far-fetched. Even if the country still has a lot of catching up to do.

And it's not just China, Goldman says. The value of all emerging markets will soar, rising fivefold to $80,000 billion from $14,000 billion (in constant U.S. dollars) today. Already, the firm notes, emerging-nation stock market valuation has increased sixfold in the past 15 years.


In addition, Goldman estimates the emerging nations' share of global equity markets, which stands today at 31%, will increase to 55%, with the share of BRIC countries -- Brazil, Russia, India and China -- rising to 41%. The main reasons are economic growth in emerging nations and expanding investment in their equity markets by developed markets' institutions and funds.

China alone could see its stock market's share of global equity valuations increasing from 11% today to 28% in the next two decades, which means that by 2030 it could overtake the U.S.'s market capitalization, with India zooming to third place.

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mckenziecolt

WHAT IS SO HARD ABOUT SAYING THESE WORDS....IF YOU DON'T MAKE IT HERE.....YOU CAN'T SELL IT HERE IS VERY SIMPLE.....ITS TIME FOR US TO SAY SCREW THE WORLD PISS OFF ALL OTHER NONE AMERICAN COUNTIES. REALLY AMERICA THE JOKES ON US....HOME FRONT ! HOME FRONT ! HOME ******WAKE UP LEADERS OF THE FREE WORLD*******

September 09 2010 at 11:18 PM Report abuse rate up rate down Reply
ingfp

China learned from capitalist (USA) and are growing. We (USA) are trying to reinvent the wheel through our worthless government. It is a real travesty in the making but that is what happens when you have a socialistic type administration.

September 09 2010 at 9:29 AM Report abuse +2 rate up rate down Reply
ablantons

Way to go china!

September 09 2010 at 8:34 AM Report abuse rate up rate down Reply
1 reply to ablantons's comment
goody3bo

China is growing fast and this is only the beginning! The question for us the average person is: Is it time to invest in China and Japan? Japan has been in Kondratieff Winter for a long time now and one wonders how soon the spring will come. China continues to invest billions of dollars in countries in Africa and southwest Asia that we view as having too many problems. Where we see problems, however, China sees opportunity, and these investments in construction and natural resources are already generating enormous profits. Meanwhile, we're throwing billions of dollars into supporting and maintaining the wars in Afghanistan and Iraq. And what do we get back from this Sisyphean effort? Body bags and an ever weaker economy. They will overtake us before you can say "Superpower." China is doing what United States has done when the World War started. US invested in it's production capacity and became the largest Industrial producer. We produced what the World wanted and we exported it. And we got rich. American market size helped with economics of scale. Now it is China's turn to do the same. As always, the questions is whether the growth is already priced in or not. China's one child policy caused the demographics to be less favorable for growth compared to India whose population is exploding unchecked. So, the questions is how will China's stock market be effected? How soon will the current slump stop? While boomers will be selling American stocks, it may be wise to invest in Asia to grab a portion of their growth: http://www.kondratieffwavecycle.com/stock-market/is-it-time-to-invest-in-china-and-japan/

September 09 2010 at 8:45 AM Report abuse rate up rate down Reply