China’s stock market value tops 10 trillion USD Brand Equity assumptions

Shenzen Stock Exchange building OMA architects

Shenzhen and Shaghai stock markets combined market cap has reached more than 10 trillion USD.

Brand equity is hard to measure yet integral part of company valuation and market capitalization.

If we assume, for the sake of the conversation, that at least 1 % of Chinese markets cap is Brand Equity, then this amounts to 100 billion USD.

Shenzhen lists 1,714 and Shanghai lists 1,063 companies, totaling at 2,777 companies.

We can again assume that Brand Equity is managed by a typical marketing department with average staff of approx. 10 marketing managers.

Then we conclude that 27,770 people manage 100 billion USD of value, which is a bit more than 3,5 million USD for each manager to manage.

These assumptions are most likely greatly underestimating the importance of Brand Equity Management on market cap of Chinese stock markets.

Written by: Nikola Tosic
Publishing date: 15 Jun 2015