China now powers 62% of the BRICS bloc’s market cap, which is down 8% compared to March 2023. Amidst a selloff of Chinese stocks recently, the hold China has on the BRICS market cap is still the majority but it is slumping.
Conversely, India’s market valuation has surged by $743 billion in the past nine months. The total BRICS market cap sits at $15.3 trillion as of Thursday.
For reference, China had over 70% of the groups’ valuation in April this year. The Chinese state-run banks offloaded US dollars in the spot foreign exchange markets for three consecutive days on Monday, Tuesday, and Wednesday this week. Chinese banks were selling the US dollars and immediately buying the Chinese Yuan. The move aimed to tilt the Chinese Yuan into a favorable position against the US dollar.
Other than China, South Africa also witnessed an erosion of nearly $100 billion in 2023. It amounts to just 1.96% of the total BRICS market cap, sitting in last place of the five BRICS founders. Russia is second to last at 3.78%, and Brazil sits in the middle at 5.58%.
Despite the downturn in the latter months of the year, BRICS founder China still expects economic growth of more than 5% by the end of 2023.