Chinese Economy Is Booming, But Stock Markets Haven’t Recovered in 20 Years

The Shanghai Composite closed Friday near 4,113 points, still about 33% below its 2007 peak, even as China’s nominal output has expanded roughly sevenfold over the same two-decade stretch.

The US benchmark has delivered upward of 600% in total returns over that period, exposing a structural gap between China’s real economy and the prices its listed companies command.