In three years, China and Hong Kong stocks experienced a combined loss of approximately $5 trillion, which is more than the total market capitalization of India.

• The Indian stock market has a higher value than the combined market capitalization of China and Hong Kong stocks since 2021, which amounted to a staggering $4.8 trillion.
• Indian stocks have rallied amid broader optimism about the country's growth.
• Although the global IPO market was muted in 2023, EY's research revealed that Indian stock exchanges had the highest number of IPOs that year.

The Indian stock market has a higher value than the combined market capitalization of China and Hong Kong stocks since 2021, which amounted to a staggering $4.8 trillion.

The statistic indicates that China and Hong Kong have not performed well, in contrast to India's National Stock Exchange, which has experienced growth during the same period.

In January, the NSE surpassed Hong Kong Stock Exchanges and Clearing to rank fourth globally, with a value of $4.63 trillion, making it the third largest in Asia.

In contrast to declines in both China and Hong Kong, Indian stocks have experienced significant growth in recent years.

Last year, the CSI 300 index in mainland China and Hong Kong's index both experienced declines for three straight years, with the CSI 300 index falling 11.4% and Hong Kong's index declining 13.8%. Both were the worst-performing major Asia-Pacific indexes in 2023.

China worries hit Hong Kong markets

The Hong Kong property market has been impacted by concerns about China's struggling real estate sector, which has also affected Chinese real estate stocks listed on the HKEX.

Despite analysts' doubts, China aims to achieve a 5% growth rate for 2024, but S&P Global Ratings predicts a slower 4.6% growth rate for the world's second-largest economy, compared to the 5.2% growth rate forecast for 2023.

S&P Global Ratings' Asia-Pacific chief economist, Louis Kuijs, stated in a client note that our forecast takes into account ongoing property weakness and moderate macro policy support. He added that deflation could still be a threat if consumption remains weak and the government decides to stimulate manufacturing investment even further.

In March, Nicolas Aguzin, the former CEO of HKEX, stated to CNBC that the exchange is experiencing a decline in new listings due to factors such as low investor confidence in China, high interest rates, and geopolitical tensions.

India: An investor favorite

The country's benchmark has risen for eight straight years, registering gains of 20% in 2023, while Indian stocks have rallied amid broader optimism about the country's growth.

According to HSBC research, India's National Stock Exchange surpassed the Shanghai Stock Exchange in monthly transaction volume, but still fell short of the Shenzhen Stock Exchange, which remained the global leader.

In 2023, Indian stock exchanges had the highest number of initial public offerings, despite a sluggish market for IPOs, particularly in Asia. India recorded 220 IPOs in 2022, raising $6.9 billion in proceeds, which represents a 48% increase in deal activity compared to the previous year.

According to George Chan, EY global IPO leader, while China's market has slowed down, India has stood out as a top performer, as stated in a separate research report.

In 2019, India accounted for only 6% of global IPO deals, but as of the first quarter of 2021, it has risen to 27%, making it the world's leading IPO market by deal volume.

While EY data revealed that there were 30 IPOs in China's A-share market in the first quarter, raising $3.4 billion, this was the lowest number of IPOs and smallest proceeds since 2020. In contrast, Hong Kong had just 10 IPOs during the three-month period, with only two crossing $100 million in deal size, resulting in the lowest proceeds since 2010.