India overtakes Hong Kong ranking fourth globally in financial markets

The market capitalization of India’s stock market has surpassed that of Hong Kong’s for the first time, as growth prospects and political reforms in the South Asian country make it a favored destination for investors as global capital flows out of China.

The total value of stocks listed on Indian stock exchanges reached $4.33 trillion as of Monday’s close, compared to $4.29 trillion for Hong Kong, according to data compiled by Bloomberg. This makes India the fourth largest stock market in the world. It surpassed $4 trillion for the first time on December 5, with roughly half of that coming in the past four years.

Observers believe that the economic struggles facing China have hindered growth in Hong Kong.