18 years, zero returns: China’s stock market stuck in time even as Nifty surges 500%

Despite China’s significant economic growth over the past 18 years, investors have not seen corresponding financial gains. Whilst China has established itself as the world’s second-largest economy after the US, its primary stock market indicator, the Shanghai Composite Index, has shown stagnant returns.
The Shanghai Composite, encompassing all Shanghai Stock Exchange listings, remains at levels comparable to early 2007. Similarly, the Hang Seng index, home to prominent Chinese corporations such as Tencent, Alibaba, and Meituan, has demonstrated negligible returns during this timeframe, according to an ET report.
By comparison, the US S&P 500 has risen above 250 per cent whilst India’s Nifty 50 has achieved nearly 500 per cent growth in the corresponding period.
This underwhelming performance is particularly notable considering China’s GDP has more than doubled between 2008 and 2024. Despite…