China, India, and Hong Kong have emerged as the only major stock markets worldwide where top companies account for a smaller share of market capitalization than a year ago, underscoring their lag in the global AI race.
In both China and India, the ten largest companies in each nation now account for about 19% of total market capitalization, down respectively from 26% and 22% a year ago, according to Bloomberg‑compiled data. Hong Kong remains the least top‑heavy market, with big-company concentration slipping to 9.8% from 10%, though the city is largely shaped by financials and mainland-firm listings.
Not coincidentally, these markets’ benchmarks have largely underperformed, especially compared to Taiwan and South Korea, where a few AI stars have lifted entire benchmarks. The data show while diversity can be a strength, it can also leave markets behind when fast‑emerging sectors like AI are underrepresented.
“Asia’s concentration story is split,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. “In the tech-heavy markets, AI and memory winners are driving index concentration higher. But in India, China and Hong Kong, concentration is falling because there is no single dominant AI winner.”
