Statsguru: How India fares in stock mkt metrics after overtaking Hong Kong

Investors were willing to buy Hong Kong-listed shares at 21 times their earnings in March 2019. This price-to-earnings ratio fell to under 15 by the end of 2023

Hong Kong lost its place as the fourth largest stock market to India last week, albeit temporarily.

India’s market capitalisation on January 22 was $4.33 trillion, compared to Hong Kong’s $4.29 trillion. The subsequent day saw a reversal. The narrowing gap between the two markets, to a large extent, was driven by Hong Kong’s decline led by a rout in Chinese companies, which has caused it to lose nearly $3 trillion in market capitalisation over the last few years. China’s economic woes and tensions with the West are playing out on Hong Kong’s bourses (chart 1).