China’s A-share market witnessed a strong performance in 2024, with the majority of listed companies showcasing robust financial results. This success underscores the resilience of China’s economy, the second-largest globally. By the latest data analysis, over 66% of firms listed on the Shanghai and Shenzhen stock exchanges reported profits for the year, with nearly 20% achieving a significant increase in net profit compared to the previous year.
Experts like Zhu Keli from the China Institute of New Economy attribute this success to the ongoing industrial transformation and the country’s increasing innovation capacity. These financial reports reflect the underlying strength of the Chinese economy, backed by the emergence of new sectors such as artificial intelligence, new energy, and advanced manufacturing as key drivers of economic growth.
Notably, the main board of the Shanghai Stock Exchange revealed that almost half of China’s top 50 listed companies by market capitalization in 2024 belonged to emerging industries, signaling a shift towards innovative sectors. The auto and electronics industries, in particular, showed remarkable growth in net profits, with the electronics sector witnessing a substantial 35.18% surge from the previous year.
Companies like auto parts supplier Shuanglin Group and semiconductor producer Will Semiconductor Co Ltd Shanghai saw significant increases in net profits, driven by the growing demand for electric vehicles and high-end smartphones. This trend highlights the momentum in tech-related manufacturing and the market’s appetite for cutting-edge products.
Technological innovation played a pivotal role in driving corporate performance, with A-share firms accounting for a substantial portion of national research and development spending. These companies also held a significant share of the country’s patents, indicating a strong focus on innovation-driven growth. For instance, automaker Seres increased its R&D investment by 60% in 2024, emphasizing the importance of staying at the forefront of technological advancements.
Industry analysts believe that by prioritizing research and development, companies like Seres can leverage global technologies and resources to enhance their products and services. This approach aligns with China’s broader strategy of promoting high-quality development and fostering the integration of technological and industrial innovation, as outlined in the Government Work Report released earlier this year.
Overall, the positive performance of A-share companies in 2024 reflects not only their individual success but also the broader economic landscape of China. With a focus on innovation, emerging sectors, and technological advancement, these companies are poised to drive further growth and contribute to the country’s economic development in the years to come.