Today we are going to take a look at some of the world’s largest trading places as we discover which 10 largest stock exchanges in Asia by volume are.
According to some economists, the origins of a stock exchange can be found in Roman’s societates publicanorum, associations of contractors who performed various public works on behalf of Senate. Cicero mentions in his works that their shares could be traded, which is the first time in history that the concept was cited.
Fast forward some 1,500 years and we arrive at Italian city-states and later Amsterdam which established the first stock exchanges in the modern sense of the world. At first they were no more than tea and coffee houses where traders gathered to exchange information and conclude deals, but over time, these have evolved into the economy’s driving force, increasing the trade volume by a huge margin. The London Exchange, featured in top 5 among the 20 largest stock exchanges in the world, has its origins in a dimly lit coffee house with lists of tradable goods and their prices nailed to its walls.
What happened next set up the trend that has kept up until today. First, several companies went public, seeking investors for overseas projects. Fueled by relentless race for colonies and promises of huge riches that could be made, people hurried to invest their money in these companies. One of these was South Sea trading company, whose crash in 1720 nearly took the entire England’s economy with it and is regarded as the first (and one of the worst) financial bubble crisis in history.
In Asia, the oldest stock exchange was founded in Bombay in mid-19th century. Although not the largest stock exchange in Asia by volume, it is considered one of the fastest. In recent decades, as Asian economies grew, so did their stock exchanges and today they represent a large portion of world’s economy. Stock markets in Tokyo, Shanghai and Hong Kong, while still lagging behind Wall Street stock exchange in market capitalization, they are getting close in volume.
Let’s see where they place on our list of 10 largest stock exchanges in Asia by volume.
10. Indonesia Stock Exchange IDX
Monthly volume: $ 7.8 billion
Created in 2007 by a merger of Jakarta Stock Exchange and Surabaya Stock Exchange, Indonesia Stock Exchange can trace its roots back to 1912, when the Dutch opened the first stock market in Jakarta.
9. Bursa Malaysia MYX
Monthly volume: $ 10.5 billion
Previously known as Kuala Lumpur Stock Exchange, Bursa Malaysia was created in 2007.
8. Bombay Stock Exchange BSE
Monthly volume: $ 11.8 billion
Bombay Stock Exchange is the oldest stock market in Asia, established in 1875.
7. Taiwan Stock Exchange TWSE
Monthly volume: $ 54.3 billion
Although somewhat eclipsed by the rise of People’s Republic economic rise, Taiwan Stock Exchange is still considered one of the most important bourses in the world.
6. National Stock Exchange of India NSE
Monthly volume: $ 62.2 billion
Second Indian stock exchange on the list, NSE is based in Mumbai and is the largest stock market in India.
5. Korea Exchange KRX
Monthly volume: $ 136 billion
Fifth on our list of largest stock exchanges in Asia by volume is Korea Exchange or KRX. Since 2005, it is the only stock market in Korea.
4. Hong Kong Stock Exchange HKEx
Monthly volume: $ 155 billion
The first Chinese stock exchange on our list, HKEx was founded in 1891. Despite the competition from mainland China, it remains one of the world’s largest trading hubs by both volume and market capitalization.
3. Japan Exchange Group JPX
Monthly volume: $ 402 billion
Created by the merger of Tokyo and Osaka stock exchanges, JPX is the third largest stock market in the world and the largest one in Asia by market capitalization.
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2. Shenzhen Stock Exchange SZSE
Monthly volume: $ 800 billion
The youngest exchange in Asia, SZSE has quickly made its way among the largest stock markets in the world since it was founded in 2009.
1. Shanghai Stock Exchange SSE
Monthly volume: $ 1,278 billion
Shanghai Stock Exchange is first on our list of 10 largest stock exchanges in Asia by volume, catering to ever growing stock market in China. With the volume of $ 1,278 billion monthly it is second in the world behind the New York Stock Exchange.
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