Enlarge image

Bull sculptures in front of the Hong Kong stock exchange: India has overtaken China in market capitalization


Kin Cheung / dpa / AP

Chinese stock markets, which have come under pressure, have gained some support following prospects of a rescue package.

After sliding to a five-year low at the beginning of the week, some indices recovered, with the Hang Seng Index in Hong Kong jumping by three percent.

The Shanghai stock exchange also recovered, with the most important index rising by half a percentage point.

According to an agency report, China is considering a package of measures worth billions to stabilize the stock market.

Around 278 billion dollars (two trillion yuan) were to be mobilized, primarily from offshore accounts of Chinese state-owned companies, for a stabilization fund that would invest in domestic assets via the Hong Kong stock exchange, reports the Bloomberg news agency, citing people familiar with the matter.

In addition, at least 300 billion yuan should be made available for local funds to flow into onshore stocks via China Securities or Central Huijin Investment.

The government is also exploring other options, some of which could be announced this week, the report added.

A cabinet meeting chaired by Prime Minister Li Qiang on Monday, at which further cash injections for the capital market were promised, also provided confidence on the stock exchanges.

India overtakes Hong Kong stock exchange in market capitalization

Even though China recently achieved its self-imposed growth targets, the ongoing economic concerns are weighing on the markets in China.

The patchy recovery in the world's second-largest economy and a renewed slump in home sales last week had recently further affected the stock markets.

In terms of market capitalization, the Indian stock market overtook the Hong Kong stock exchange for the first time at the start of the week.

This refers to the market value of all companies listed in the respective region.

India has climbed to fourth place in the global stock market rankings, according to Bloomberg data.

In the past four years, the subcontinent's market capitalization has roughly doubled.

A growing number of affluent consumers and rising corporate profits are boosting stock prices in India.

This means that there is an alternative to China in the emerging countries, which is also characterized by a fairly stable political situation.