Top 10 stock exchange in the world plays an important role in the formation and development of the global financial market. In 2023, the World Federation of Securities Exchanges (WFE) and the Securities Industry and Financial Markets Association (SIFMA) estimated the global stock market at 109 trillion USD.
I. The role of the top 10 world stock exchanges
In the context of the growing global stock market, it is extremely important to grasp information about the world's leading stock exchanges. The world currently has nearly 80 stock exchange with a total capitalization of $110.2 trillion. The New York Stock Exchange (NYSE) and the Nasdaq Stock Market in the US are the first two to attract attention due to their size and influence. The Tokyo Stock Exchange (TSE) plays a large role in the Asian context, while the London Stock Exchange (LSE) is the center of the European market. Exchanges in Shanghai, Hong Kong, Euronext, Bombay, Toronto and Frankfurt all contribute to the diverse and dynamic picture of the global stock market.
Chart of the world's largest stock exchanges according to data from the World Federation of Exchanges (WFE).
Top 10 World Stock Exchange play a vital role in shaping and regulating the global stock market. These leading exchanges play a vital role in creating a safe, transparent and fair trading environment for investors.
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In 2023, the World Federation of Exchanges (WFE) and the Securities Industry and Financial Markets Association (SIFMA) estimated the global equity market at $109 trillion. With a market capitalization of $46.2 trillion, the United States has the largest share of the global equity market, equivalent to $42.51 trillion. This is nearly four times larger than the second-largest market, the European Union (EU) ($12.1 trillion, equivalent to $11.11 trillion). China has the third-largest equity market in the world, with a market capitalization of $11.5 trillion, equivalent to $10.61 trillion. It is followed by Japan ($5.8 trillion), Hong Kong ($4.3 trillion), the United Kingdom ($3.2 trillion), Canada ($3 trillion), Australia ($1.7 trillion), and Singapore ($600 billion).
The existence and operation of Top 10 Stock exchange The World brings many benefits to both countries and regions. First, they attract investment capital from all over the world, helping to improve the economic strength and development of their countries. Furthermore, thanks to the development of these exchanges, the stock market is improved in terms of liquidity and fairness.
The top stock exchanges in the world also play an important role in supporting businesses and listed companies to increase their finances. Thanks to stock trading, companies can raise capital from investors to develop their business and expand their scale. The exchange is also where capital moves between countries, creating connections between financial markets around the world. This helps improve transparency and promote international investment.
Contributes to Investment Diversification: Investors can easily diversify their investment portfolio by participating in global exchanges. This helps reduce risks and optimize profits in a multinational environment.
The world stock exchange is the center of the financial industry, including securities firms, investment banks, and other financial institutions. This creates a system that supports the economy and provides a wide range of financial services; facilitates innovation in the financial industry, especially in the technology sector. Financial technology companies often have a major impact on the way financial services are provided and accessed.
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II. Top 10 most prestigious international stock exchanges
1. NYSE – New York Stock Exchange (USA)
The New York Stock Exchange is one of the largest and most prestigious international stock exchanges in the world, headquartered in New York, USA and managed by Intercontinental Exchange, Inc. (ICE). The NYSE was founded in 1792 and has since grown to become one of the world's leading stock exchanges. The New York Stock Exchange trades a wide range of assets such as bonds, stocks, investment funds and other financial products.
The NYSE includes many stocks of big names in many different fields such as finance, energy, technology, healthcare, goods, and services. Up to now, the NYSE has more than 2,400 listed companies and the total capitalization on this exchange is up to thousands of billions of USD.
2. NASDAQ Stock Exchange (USA)
NASDAQ, also known as the National Association of Securities Dealers Automated Quotations, is one of the largest and most famous stock exchanges in the United States. Founded on February 8, 1971, NASDAQ is unlike other exchanges such as the New York Stock Exchange (NYSE) with its use of an electronic trading system.
NASDAQ is one of the stock exchange The first to switch to an electronic trading system, without a physical center, but transactions are carried out electronically. Apple, Amazon, Facebook, Google, Microsoft… are also listing their shares on this exchange. This helps transactions take place faster and more efficiently, minimizing delays compared to traditional systems. NASDAQ is famous for listing many of the world's leading technology companies, including prominent representatives such as Apple, Microsoft, Amazon and Alphabet (Google's parent company). This makes the exchange an important destination for investors interested in the technology sector.
3. Shanghai Stock Exchange (SSE) – China
The Shanghai Stock Exchange (SSE) is known as the largest stock exchange in China and one of the leading international exchanges in the world. Founded in 1990, SSE is headquartered in Shanghai, China. As of April 2021, more than 1,700 companies have registered and traded on SSE, with a total market capitalization exceeding 7,000 billion USD.
SSE offers a variety of stock trading platforms, including online and broker-based trading. Key indices such as the SSE 50 Index, SSE 180 Index, SSE Composite Index, and SSE Mega-Cap Index are all important tools for assessing market performance.
Although SSE has faced challenges such as the Chinese stock market crash in 2015, it has continued to make efforts to improve its transparency and liquidity.
4. HKEX Stock Exchange (China)
The Hong Kong Stock Exchange (HKEX) is the largest stock exchange in Asia and the fourth largest in the world. Founded in 1891 and headquartered in Hong Kong, HKEX plays an important role in the regional financial system and is a leading financial center in Asia.
HKEX offers a wide range of financial products such as stocks, bonds, investment funds, and derivatives such as futures and options. HKEX has important indices such as the Hang Seng China Enterprises Index and the Hang Seng Index.
Recognized for its transparency and efficiency, the HKEX maintains strict regulatory and ownership rules. The Hong Kong stock exchange has also faced challenges such as the impact of the US-China trade war and the market downturn in 2019.
5. London Stock Exchange (LSE) – England
The London Stock Exchange (LSE) is the largest stock exchange in Europe and is among the top 10 largest stock exchanges in the world. Founded in 1801 and headquartered in London, LSE offers a wide range of financial products such as stocks, bonds, mutual funds, investment funds, and derivatives such as futures and options.
The LSE has a main market where large, traditional companies are listed, and an AIM where smaller, emerging companies are listed. Highly regarded for its reputation and transparency, the LSE attracts many global investors. However, following the Brexit vote in 2016, the stock market has faced challenges from the volatility of European equities.
6. Tokyo Stock Exchange (TSE) – Japan
The Tokyo Stock Exchange (TSE) is one of the largest and most important stock exchanges in the world, especially in Asia. It was established in 1878 as “Kyoto Kabushiki Torihikijo” and then moved to Tokyo in 1949. The current name is Tokyo Stock Exchange (TSE) and was officially applied since 1943. Currently, there are 2,271 domestic companies and 31 foreign companies listed on TSE, with a total market capitalization of more than 4,000 billion USD, TSE ranks 2nd in the world in terms of trading volume, just behind the New York Stock Exchange.
TSE is famous for its high reputation and liquidity. This exchange is the main destination for many investors and companies that want to list their shares to raise capital. TSE is not only a trading place for Japanese companies but also attracts the attention of international investors. This helps to strengthen the power and importance of TSE in the global financial community.
7. Toronto Stock Exchange (TSX) – Canada
The Toronto Stock Exchange (TSX) is the largest stock exchange in Canada and is among the top 10 largest international exchanges in the world by market capitalization. Founded in 1852 and headquartered in Toronto, Canada, the TSX lists more than 3,000 companies and is home to many large corporations in the fields of finance, energy, technology, biotechnology and mining.
The TSX is highly regarded for its reputation, stability, and strict oversight with high standards for listing requirements and disclosure. It is an attractive option for companies looking to list their shares to raise capital. In addition, the TSX also has many indices such as the S&P/TSX Composite Index.
8. Australian Securities Exchange (ASX) – Australia
The Australian Securities Exchange (ASX) is the largest stock exchange in Australia and is among the top 10 international stock exchanges in the world. ASX was established in 1987 after merging two old stock exchanges in Sydney and Melbourne.
The ASX trades a wide range of assets including shares, bonds, derivatives and investment funds. Shares listed on the ASX often come from big names in the banking, finance, pharmaceuticals, oil and gas and mining sectors.
ASX has stock indices such as S&P/ASX 50, S&P/ASX 200 and S&P/ASX 100, which are used to assess the economic and financial market situation of Australia. The exchange applies advanced technology to enhance trading capabilities and ensure market integrity.
9. Singapore Exchange (SGX) – Singapore
Singapore Exchange (SGX) is the largest stock exchange in Singapore and one of the 3rd largest in Asia in terms of total market capitalization. It was established in 1999 after the merger of the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX).
With over 2,200 listed companies, SGX ranks third in market capitalization after TSE and SSE. SGX lists both domestic and international companies, especially those in the Southeast Asian and Asian regions.
SGX is among the world's top 10 international stock exchanges for futures and options. With advanced technology, Singapore Exchange is one of the leading electronic stock exchanges, providing investors with the ability to access and trade from anywhere via its website and mobile applications. However, SGX also faces competition from regional and global stock exchanges, as well as the influence of global economics and politics on the Singapore stock market.
10. IC Markets (Australia)
IC Markets is an international brokerage founded in 2007 and headquartered in Australia. It holds three licenses from ASIC, CySec, and FSA, placing it among the most reputable brokers globally. In 2018, IC Markets averaged a whopping $400 billion in monthly trading volume.
IC Markets lists more than 120 stocks, 65 currency pairs, indices, commodities, and cryptocurrencies. With fast order matching speed, diverse deposit and withdrawal support via Visa, Paypal, Bitcoin Wallet, this floor attracts investors with its flexibility and reputation.
III. Position of Vietnam stock market in 2024
The position of Vietnamese securities in the international market is increasingly recognized and appreciated. Thanks to the remarkable development in recent years, Vietnamese securities have attracted the attention of international investors.
The world's stock markets are classified into 3 main groups, from low to high: Frontier Market, Emerging Market, Developed Market. The ranking of Vietnam's stock market is at the lowest level, Frontier Market. Vietnam currently has 3 stock exchanges: HOSE, HNX and UPCOM.
In 2024, the Vietnamese Government will implement necessary tasks and solutions to upgrade the Vietnamese stock market from a frontier market to an emerging market, in order to attract foreign investment capital and institutional investment funds. The Government has directed state management agencies and ministries and branches to implement solutions to support the capital and stock markets.
The development of information technology and telecommunications is also an important factor helping Vietnamese securities go further in the international market. Securities companies in Vietnam have applied modern technology to provide online trading services, helping to narrow the gap with other exchanges in the world.
In addition, the stability of Vietnam's economy and its solid growth potential are also major advantages. With impressive GDP growth, Vietnam's stocks promise to bring attractive returns to investors.
However, it is important to remember that building and maintaining the position of Vietnamese securities in the international market is not an easy task. Investment and efforts from the government, businesses and people are needed to build a sustainable and transparent securities system that attracts the trust of international investors.
Source: Onstocks
