China just a bad day away from losing world number two stock market title

China’s equity market is only one bad day from losing a title it’s held for almost four years.

Following Tuesday’s $406 billion wipeout, Chinese stocks have lost more than $1.6 trillion in market cap since a peak in January. It would only take another drop of a similar magnitude to make Chinese stocks less valuable than those in Japan, which typically benefits from having a currency that’s often seen as a haven asset in times of market stress.

China has been home to the world’s second-largest equity market since it overtook its Asian neighbor at the end of 2014, according to data