AI Development Lagging: Market Cap Share of Leading Companies in China, Hong Kong, and India Declines

(CNA Beijing, June 29, comprehensive foreign news) Data compiled by Bloomberg News shows that among the world's major stock markets, only the proportion of the total market capitalization of leading companies in China, Hong Kong, and India has declined compared to a year ago, highlighting their lag in the global artificial intelligence (AI) race.

Bloomberg reported that the market capitalization of the top ten companies in China's A-shares and India accounted for about 19% of their respective total market capitalization, down from 26% and 22% a year ago. In the Hong Kong market, which is dominated by the financial industry and Chinese companies listed in Hong Kong, the concentration of large enterprises slightly decreased from 10% to 9.8%.

Compared to Taiwan and South Korea, markets where a few AI-related companies have boosted benchmark indices, the significant underperformance of benchmark indices in China, Hong Kong, and India is not coincidental. Data shows that while diversified industry distribution may be an advantage, a low proportion of rapidly emerging industries like AI in the overall economy can also drag down market performance.

Charu Chanana, Chief Investment Strategist at Saxo Markets in Singapore, said: "Market concentration varies across Asia. In tech-dominated markets, AI and storage winners continue to drive index concentration higher. However, markets like India, China A-shares, and Hong Kong are seeing declining concentration due to the lack of a single AI behemoth."

A few companies closely linked to the AI supply chain are driving their respective markets to surge. Taiwan's TAIEX index has surged 54% year-to-date, benefiting from the leading foundry giant TSMC. South Korea's KOSPI index has risen by about double, driven by high-bandwidth memory (HBM) leaders SK Hynix and Samsung Electronics.

Before emerging as key AI suppliers, these companies already held significant weight in their domestic markets, and their influence has now expanded further. The top ten companies in South Korea currently account for 65% of the total stock market capitalization, about double that of a year ago, and the concentration of the top ten companies in Taiwan has also increased from 49% a year ago to 56%. (Compiled by: Hong Qi-yuan) 1150629

Choose to stand with the facts. Your every sponsorship is a force to protect press freedom.

Download the CNA "One-Stop News" APP to get the latest news in real-time.

The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or used without authorization.