Someone twitted to us during our BFM show about the veracity of the figures of a country's stock market as a percentage of GDP. Why is the figure important ... if you can strip out foreign listings and non related listings (inclusive of SPACs) and maybe some REITs that are foreign or regional in nature, you get a good grasp of how much of your economy is listed.
The higher the figure, the higher the importance of the stockmarket in feeling and shrinking economic activity. IN a super bull, Malaysian domestic economy would flourish as most people will see a lot of funds swishing around, the same when its a bear market when restaurants business dwindles sharply. The higher the figure, the more attention will the central banks and authorities pay to major fluctuations in share markets.
China, though has a lowly figure of GDP that is listed, is important this time owing to the exuberant amount in leverage/margin.
The latest figures were for 2012. There are still discrepancies because many markets have "outside interests" being listed as well on their markets. It could be REITs, foreign listings, etc...
South Korea 96%
South Africa 154%
Wednesday, July 15, 2015
Countries Stock market's Capitalisation As A % Of GDP
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