Dragon fire singes $12.4-trillion investor wealth

The China crisis has led to an erosion of $12.4 trillion of global investor wealth. The highest erosion in market capitalisation (m-cap) has taken place in China itself at nearly $5 trillion - equivalent to the current m-cap of Switzerland, India, South Korea and Australia combined. Since June 12, when the Chinese stock market bubble popped, China's m-cap has almost halved.

If the Chinese market continues to tumble, Japan might soon regain its second position in the league table of world m-cap. India has seen about $100 billion getting shaved off from its m-cap during this period. India had seen peak m-cap of $1.71 trillion on March 3. But the m-cap slipped 18 per cent from that level.