China’s economy has been on a growth tear for more than 40 years. In that time, China has also grown from a third-world nation into a global super-power. Boasting the second-largest economy today, China is poised to wrestle the top spot from the U.S. by 2035.
Chinese companies have been the backbone, and main beneficiaries of this growth, over the decades. Unlike in the 1980s, Chinese brand names today do not look out of place beside their global peers. We look at the 10 largest Chinese companies that we can invest in today. Not all Chinese companies are listed in China – perhaps due to the closed-off nature of its capital markets.
Despite its stock market weakness in recent years, its strongest companies will likely play key supporting roles as it attempts to become the biggest economy in the next decade.
Read Also: How To Invest in The China Market Using A Robo Portfolio
#10 China Construction Bank (CCB) (SHA: 601939) (HKG: 0939)
Market Capitalisation: RMB1.09 trillion (US$150 billion)
Listing Status: Shanghai Stock Exchange (SSE); Hong Kong Stock Exchange (HKEX)
1-Year Performance: 22%
5-year Performance: -1%
One of the four major Chinese bank, CCB is listed on both the Hong Kong and Shanghai stock exchanges. The bank employs over close to 352,000 people at nearly 15,000 banking outlets. CCB has a presence covering over 30 countries and regions globally – making it a global bank.
CCB is the fourth largest bank in China, and this also makes it the fourth-largest bank in the world.
#9 Bank of China (BOC) (SHA: 601988) (HKG: 3988)
Market Capitalisation: RMB1.27 trillion (US$180 billion)
Listing Status: Shanghai Stock Exchange (SSE); Hong Kong Stock Exchange (HKEX)
1-Year Performance: 34%
5-year Performance: 18%
BOC is another major Chinese bank listed on both the Hong Kong and Shanghai stock exchanges. As the most globalised Chinese bank, the financial institution hires over 300,000 employees in more than 60 countries and regions globally.
#8 PDD Holdings (NASDAQ: PDD)
Market Capitalisation: US$169 billion
Listing Status: NASDAQ
1-Year Performance: 33%
5-year Performance: 363%
Social commerce giant Pinduoduo (PDD) is a recent entrant to the top 10 most valuable Chinese companies. Unlike its technology peers on this list, Alibaba and Tencent, PDD has rocketed over 363% in the past 5 years. Pinduoduo has also penetrated the U.S. and international markets with its Temu e-commerce platform.
#7 Alibaba Group (NYSE: BABA); (HKG: 9988)
Market Capitalisation: US$183 billion
Listing Status: New York Stock Exchange (NYSE); Hong Kong Stock Exchange (HKEX)
1-Year Performance: -31%
5-year Performance: -57%
Alibaba’s businesses span e-commerce, grocery chains, food delivery, video streaming, logistics, cloud infrastructure and more. After the untimely halt of its much-hyped Ant Financial IPO by the Chinese authorities, the company’s share price has been hit hard – falling 57% in the past 5 years.
Alibaba’s shares were also impacted by tightening measures on the technology industry introduced by the Chinese authorities. Due to this double whammy, Alibaba’s share price suffered, even though its operations have continued to run relatively smoothly.
#6 China Mobile (HKG: 0941)
Market Capitalisation: RMB1.34 trillion (US$190 billion)
Listing Status: Hong Kong Stock Exchange (HKEX)
1-YearPerformance: 33%
5-year Performance: 76%
Based in China, China Mobile is the world’s largest telecommunications service provider with 985 million mobile customers and 286 million broadband customers.
The firm provides world-class telecommunications infrastructure throughout all 31 provinces, autonomous regions and directly-administered municipalities throughout the mainland of China and in Hong Kong Special Administrative Region.
#5 Agricultural Bank of China (SHA: 601288)
Market Capitalisation: RMB1.35 trillion (US$190 billion)
Listing Status: Shenzhen Exchange (SZSE)
1-Year Performance: 36%
5-year Performance: 8%
Also known as ABC, the Agricultural Bank of China is one of the “Big four” Chinese banks. It has a global footprint, with branches in mainland China, Hong Kong, London, Tokyo, New York, Frankfurt, Sydney, Seoul, and Singapore.
The bank has 320 million retail customers, 2.7 million corporate clients, and approximately 24,000 branches. Currently, the bank employs more than 467,000 employees.
#4 PetroChina Company Limited (SHA: 601857) (HKG: 0857)
Market Capitalisation: RMB1.45 trillion (US$200 billion)
Listing Status: New York Stock Exchange (NYSE); Shanghai Stock Exchange (SSE); Hong Kong Stock Exchange (HKEX)
1-Year Performance: 61%
5-year Performance: 11%
PetroChina was formed in 1999, after the restructuring of state-owned China National Petroleum Corporation (CNPC). Listed in Hong Kong and China’s Shanghai Stock Exchange, PetroChina is one of the largest oil & gas producers in Asia. PetroChina also deregistered its American Depositary Receipts (ADRs) from the U.S. in 2022.
While PetroChina suffered a steep drop in revenue following COVID-19 and the subsequent decline in international crude oil prices in 2020, revenue has rebounded above 2019 levels. This translated into strong share price performance in the past 1-year period – surging 61%.
#3 Industrial & Commercial Bank of China (ICBC) (HKG: 1398); (SHA: 601398)
Market Capitalisation: US$250 billion
Listing Status: Hong Kong Stock Exchange (HKEX); Shanghai Stock Exchange (SSE)
1-YearPerformance: -17%
5-year Performance: -34%
Another Chinese bank that needs no introduction, ICBC is the biggest bank in China with 680 million retail customers and over 8 million corporate customers. This also makes it the biggest bank in the world with over US$4 billion in assets.
ICBC also regularly features as the top bank in the world in various lists such as Top 1,000 World Banks, Global 2,000 by Forbes and Fortune’s Global 500.
#2 Kweichow Moutai (SHA: 600519)
Market Capitalisation: RMB2.14 trillion (US$300 billion)
Listing Status: Shanghai Stock Exchange (SSE)
1-year Performance: -8%
5-year Performance: 135%
China’s most valuable non-technology company, Kweichow Moutai is also the world’s largest distillery and most valuable listed beverage company. Producing baijiu, the alcohol of choice in China, Kweichou Moutai has also likely benefitted from slower external travel for Chinese residents since COVID-19.
Disregarding companies not listed in China – i.e. the largest listed China-based company is listed in the U.S. – Kweichow Maoutai would be considered the most valuable listed company in China.
#1 Tencent Holdings (HKG: 0700)
Market Capitalisation: HKD2.71 trillion (US$350 billion)
Listing Status: Hong Kong Stock Exchange (HKEX)
1-Year Performance: -26%
5-year Performance: -9%
Tencent is a world-leading technology company, and the most valuable Chinese business today – after the hits taken by Alibaba in recent years.
The most well-known of its businesses is its WeChat super app. On top of this, Tencent has its hands in numerous businesses, including gaming, fintech, video streaming, music, cloud infrastructure and many more.
Read Also: Understanding Tencent (HKG: 0700) – The All-In-One Chinese Technology Stock
Investing In The Biggest Chinese Companies In The World
With the Chinese economy set to become the biggest in the world in the next decade, we can only expect its companies to similarly continue growing. While recent volatility and uncertainty in the stock market have not been favourable for investors, China’s largest companies have still growed in the past 5 years.
The biggest economy in the world should ultimately house some of the biggest companies in the world – and it won’t be a surprise if a Chinese company becomes the biggest company in the world in the coming years.
Read Also: Investing In China: Here Are 4 Different Ways You Can Get Investment Exposure
This article was first published on 13 July 2021 and has been updated with the latest information.
The post Largest China Companies That We Can Invest In Today appeared first on DollarsAndSense.sg.
