In this article, we will take a look at Top 15 Chinese stocks by market capitalization. To skip our detailed analysis, you can go directly to the Top 5 Chinese stocks by market capitalization.
China’s meteoric rise to become the world’s second-largest economy is quite surprising, especially considering the chaos the country has endured in previous decades, which has resulted in the deaths of millions of people from famines in the world. origin, while the 1970s saw the country’s economic and educational decline. while millions were purged primarily by politicide.
In terms of GDP by purchasing power parity, China is by far the largest economy in the world although it is second in absolute terms behind the United States. Despite its massive growth over the past two decades, China is still among the world’s fastest growing economies and is both the world’s largest exporter and largest manufacturer.
Unlike most other major economies, including in Europe and the United States, China’s economy is primarily driven by government intervention and state-owned enterprise dominance, while mixed-ownership enterprises are also common. Although there is a large domestic private sector, there is also a major influence of multinationals, although China often imposes restrictions on how foreign companies can enter China, often requiring partnerships with domestic companies, this which has sometimes caused problems, such as Warner Bros. withdraws its film business in China after discovering regulations that would require it to give a Chinese company at least a 51% stake or at least play a leading role in a foreign joint venture.
According to McKinsey, China is expected to have the highest level of consumption of any country in the world over the next decade. This is no surprise considering its massive size and the fact that it is home to the largest workforce in the world at nearly 800 million people. The presence of an increasingly affluent middle class with higher than ever disposable income has attracted many foreign companies despite restrictions imposed by China. For example, Volkswagen has a major presence in China which is its largest market and accounts for over 40% of total car sales. Volkswagen has launched two major joint ventures in China, such as FAW-Volkswagen and SAIC Volkswagen, whose business has grown significantly over the past decade.
As mentioned earlier, most of the largest companies in terms of assets and revenues are state-owned. These companies operate in several sectors, including utilities and infrastructure, although many of them are not among the Chinese companies with the highest market capitalization. These companies generate tens of billions of dollars in revenue and employ hundreds of thousands of people, accounting for more than 60% of the country’s total market capitalization in 2019. They were also responsible for more than 40% of China’s GDP in 2020, contributing around $4 trillion. . Towards the end of 2019, the total assets held by all state-owned enterprises in China stood at nearly $60 trillion. 91 of these companies are on the Fortune Global 500 list.
On the other hand, Chinese private companies that grow to significant levels often find themselves incurring the wrath of the government. According to CNN, China’s crackdown on private companies in the country has resulted in the loss of more than $1.2 trillion in market value, which has also spurred fears over whether innovation will be stifled in the second richest country in the world. However, the Chinese government does not intend to destroy all private companies. He just wants to make sure that these companies abide by the conditions of the Chinese Communist Party, the ruling party. Many companies have been hit with heavy fines by the government. In August 2021, in just one week, the market saw hundreds of billions of dollars wiped out after the government announced restrictions on the for-profit education industry as well as the delivery sector. food.
One of those actions was to pull Ant Group’s IPO which was due to take place in November 2021 and was supposed to be one of the biggest IPOs in history. Ant Group was then instructed to overhaul its structure and become a financial holding company, which it has since respected. Meanwhile, the government has also fined one of China’s biggest companies, Alibaba Group Holding Limited (NYSE:BABA) $2.8 billion after regulators accused it of acting as a monopoly, while other large companies such as Pinduoduo Inc. (NASDAQ:PDD) and Tencent Holdings have also been investigated for potential anti-competitive behavior.
To determine the list of largest Chinese stocks by market capitalization, we first determined the largest companies in China. We then ranked them by market capitalization based on their latest numbers as of November 17, 2022. So, without further ado, let’s take a look at the giants of the second most powerful country in the world, starting with the number 15:
Total market capitalization of the company as of November 17, 2022 (in billions): 93.1
BYD is a Chinese conglomerate and is engaged in the production of automobiles, electric bicycles, trucks, solar panels, rechargeable batteries and buses.
14. Life insurance in China
Total market capitalization of the company as of November 17, 2022 (in billions): 106.5
One of the largest life insurance companies in the world, China Life Insurance offers annuity and life insurance products. The company has nearly 100,000 employees and currently has approximately 317 million long-term individual and group life insurance policies in force.
13. Ping An Insurance
Total market capitalization of the company as of November 17, 2022 (in billions): 108.2
Ping An Insurance is a major Chinese conglomerate that provides several different services, including banking, asset management, insurance, healthcare, and finance. It is considered the largest insurance company in the world and in 2021 it had $121.7 billion written in premiums. The company currently has more than 350,000 employees.
12. CM Bank
Total market capitalization of the company as of November 17, 2022 (in billions): 115.6
China Merchant Bank has more than 500 branches nationwide as well as one in Hong Kong, in addition to 1,567 self-service banks in China.
11. Bank of China
Total market capitalization of the company as of November 17, 2022 (in billions): 121.6
Based in Beijing, Bank of China is a commercial bank that is the second oldest bank in the country. It is also the second largest lender in the country.
Total market capitalization of the company as of November 17, 2022 (in billions): 123.1
Meituan is a shopping platform for various consumer goods in addition to services such as delivery, catering, and travel, among others. In 2018, the company had over 600 million registered users and over 290 million monthly active users.
Total market capitalization of the company as of November 17, 2022 (in billions): 126.6
PetroChina is one of the largest oil and gas companies in the world, with revenues of nearly $300 billion, making it one of the largest companies in the world by revenue. Like Alibaba Group Holding Limited (NYSE: BABA) and Pinduoduo Inc. (NASDAQ: PDD), PetroChina is one of the biggest companies in China.
Total market capitalization of the company as of November 17, 2022 (in billions): 128.2
CATL is a battery manufacturer specializing in lithium-ion batteries, which is extremely important in a world where electric vehicles are the future of transportation. It also engages in the production of energy storage systems. Dominating the lithium-ion battery industry, CATL held a 32.6% market share in 2021 in the production of lithium-ion batteries for electric vehicles, making it the largest such company in the world. While it currently produces nearly 100 GWh per year, the company plans to increase it to over 800 GWh by 2030.
7. Agricultural Bank of China
Total market capitalization of the company as of November 17, 2022 (in billions): 138.1
Banks dominate the top 10 Chinese stocks by market capitalization, with the Agricultural Bank of China being no exception. Although it has branches in several countries, the bank is China’s third-largest lender by assets. In addition, the Agricultural Bank of China has more than 2.7 million corporate customers in addition to 320 million individual customers and has 24,000 branches. In 2010, the bank completed the largest IPO in history at the time.
6. Mobile China
Total market capitalization of the company as of November 17, 2022 (in billions): 146.5
China Mobile is a state-owned company that provides multimedia services and mobile services. It is the largest mobile operator in the world and has nearly 950 million subscribers. The company recorded revenues of over $100 billion in 2021. Like Alibaba Group Holding Limited (NYSE: BABA) and Pinduoduo Inc. (NASDAQ: PDD), China Mobile is one of the biggest companies in China.
Please click to continue reading and view the Top 5 Chinese stocks by market capitalization.
Disclosure: none. The top 15 Chinese stocks by market capitalization are originally published on Insider Monkey.