China Rout Puts Japan Back in Play as World No. 2 Market: Chart

China’s combined market capitalization was double Japan’s on June 12, when the value of stocks trading on Chinese equity exchanges briefly exceeded $10 trillion. The ratio narrowed to 1.2 times at yesterday’s close.

Surges aside, growth in Chinese equity markets is largely dependent on the government, which controls many of the biggest enterprises. China’s market cap as a proportion of gross domestic product was 52 percent in 2014, compared with 90 percent in Japan and 146 percent in the U.S., based on the most-recent GDP data from the World Bank. Some Chinese companies, including e-commerce leader Alibaba Group Holding Ltd., choose to list abroad instead of locally.

The ratio, measured in dollars, has also narrowed as the yen strengthened more than 10 percent against the yuan over the past six months.