Chinese stocks have gained nearly $4.9 trillion in value this year, aided by the country’s rapid recovery from the new coronavirus, a string of initial public offerings, and a blistering rally in shares of consumer and technology companies.
Chinese businesses listed on exchanges from New York to Shanghai have added 41% to $16.7 trillion, according to S&P Global Market Intelligence data for the year through Dec. 22. That outpaces a 21% run-up for American companies to $41.6 trillion.
“It’s been a very strong year” for China, said Brendan Ahern, the chief investment officer for KraneShares in New York. He said the country’s economic rebound, global investors’ appetite for high-growth stocks, and a robust IPO market had all worked in China’s favor: “The end result is a pretty dramatic growth in the size of capital markets.”
China accounts for nearly a third of world-wide increases in stock-market capitalization in 2020, the S&P data shows. Global stocks have gained 16% to $104 trillion.
The surge comes despite heightened friction with the U.S.over technology, trade and finance—and attempts by the U.S. government to discourage American pension funds and other institutions from holding Chinese stocks.