Wish You Could Invest in Shanghai's Stock Exchange? Think About Mumbai...

Filed in archive Stocks on January 16, 2010

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As the economies of India and China become more and more intertwined, and as the two countries focus more and more on competing with each other, a little context can create some perspective. I found a piece of that context recently in a blog post at 2point6billion, and I found it mildly surprising...

Mumbai may be on the way to overtaking Shanghai as a financial hub in the coming years based on data revealed by the Financial Times which shows that the Bombay Stock Exchange's main index significantly outperformed the Shanghai Stock Exchange's main index in terms of growth in the past decade.

Outsiders to Chna have often watched with envy as the Shanghai Exchange shot up - knowing that they couldn't get access to buy and sell there. But as 2point6.billion points out, Mumbai performed better over the last decade even though China's citizens have only Shanghai and the Shenzhen Exchange as options while India's citizens can invest pretty much anywhere.

No one is suggesting that China's economy isn't going to stay hot. But Mumbai may eventually become Asia's leading exchange.