"Al-Eqtisadiah" from Riyadh
The Japanese bourse has become the world's second largest stock exchange, outperforming its Chinese counterpart, after the value of traded shares on the Chinese stock exchange rose to 6.09 trillion dollars against 6.17 trillion dollars on the Japanese stock exchange.
According to the German news agency for its counterpart, "Bloomberg," the US stock market is the largest stock exchange in the world, worth more than $ 31 trillion.
The Chinese stock exchange beat the Japanese stock market in late 2014, and then recorded the highest ever value of shares in more than 10 trillion dollars in June 2015.
But the Chinese stock and currency have been hit by problems this year amid the trade conflict with the United States, the economic recession and the Chinese government's campaign to cut debt.
Bloomberg quoted Bany Lam, head of research at CIB International Investments, as he said,"The loss of second place to Japan is the damage caused by the trade war."
He pointed out that the Japanese stock index is relatively stable, but the Chinese index has fallen after reaching its highest level this year.
In June 2015, the Shanghai stock exchange began to decline, culminating in a loss of more than 30 per cent of its shares on June 12, 2015, from an increase of over 150 per cent in a year.
This rapid decline has created great panic among Chinese investors and in global markets, accompanied by a host of sarcastic comments from financial and investment institutions. The latest was that "China's losses in the market value of equities are 15 times the Greek economy," and "the losses of the Chinese stock exchange in 17 days parallel the entire stock exchange of Spain."
More than 500 listed Chinese companies announced suspension of trading on the Shanghai and Shenzhen stock exchanges, bringing the total to 1,300 companies with 45 percent of the market as companies rushed to try to stop the bleeding.
The regulator warned the stock market of panic over investors, while the market showed signs of freezing under the speed of companies to escape the turmoil by suspending the circulation of its shares.
