Deutsche Bank’s Markus Jager reminds us that the U.S. has the deepest and broadest financial markets in the world.
In comparison, China’s is tiny. He writes:
Even if China replaces the US as the world’s largest economy towards the end of this decade, China’s capital markets will remain smaller than those of the US. And even if Chinese financial markets matched the size of those in the US, it would be far from certain that they would offer comparable breadth and depth. A lot will depend on how quickly Chinese financial sector reform progresses in the coming years.
Here’s his chart:
Photo: Deutsche Bank