Regional map of A-share listed companies： Northbound and Shenzhen play their home court advantage, while Suzhou and Hangzhou are accelerating to catch up.
As outstanding representatives of Chinese enterprises, listed companies are scarce resources for regional economic development. Although the number is only about one tenth of the number of enterprises in China, they are the "basic disk" of the national real economy.
With the establishment of Shanghai and Shenzhen Stock Exchanges in 1990, China’s capital market has been born. In just over 30 years, China’s capital market has grown into the second largest market in the world. At the end of November this year, the number of listed companies in the A-share market officially exceeded 5,000, which is a historic moment.
Wind data shows that as of December 2, the number of A-share listed companies has reached 5012, and listed companies in strategic emerging industries account for over 50%. The total market value of these more than 5,000 outstanding people is close to 87 trillion yuan, which is distributed in 31 provinces (autonomous regions and municipalities directly under the Central Government) and distributed in 423 cities (including municipalities directly under the Central Government), and presents unique regional characteristics.
After 2014, a new A-share market was created.
From the time distribution of listing, before 2014, the China stock market was suspended for many times, and the annual number of IPOs also showed a state of fluctuation.
Wind data shows that, for example, in 1995, only 19 A-share companies went public, and in 2005, 14 companies went public. Especially in 2013, the IPO market of A-share was almost blank, and only two companies completed the IPO in that year. Midea Group went public in that year.
In the years with a large number of listings, such as 1996 -1997 and 2010 -2011, especially in 2010, IPO exploded, with a total of 337 companies listed, setting a record at that time.
"Before 2014, there were 8 cases of suspension of A-share IPOs. For example, in the financial crisis in 2008, the CSRC suspended the IPO for the purpose of protecting traders, and then restarted the IPO after the market bottomed out. This kind of treatment avoided the risks brought by fluctuations, but it is worth noting that the suspension of IPO could not actually change the original general trend of the market, and at the same time, excessive supervision also restricted the vitality of the market. " Li Zhan, chief economist of China Merchants Fund Research Institute, said in an interview with CBN.
After entering 2014, the number of IPOs tends to be stable. From 2014 to 2022, the number of A-share listed companies in China has exceeded the previous 24 years, which is equivalent to creating a A-share market before 2014.
Last year, the number of newly listed A-share companies reached a record 524. Among them, there are 88 main boards in Shanghai and 34 in Shenzhen, 162 listed companies in science and technology innovation board and 199 listed companies in Growth Enterprise Market, and 41 listed companies in North Stock Exchange. Up to now, the number of newly listed companies has reached 373 in 2022, and it is expected to sprint 400 during the year.
"The nine years from 2014 to 2022 correspond to the nine years of continuous marketization of China’s capital market." Li Zhan said that China’s capital market has taken a solid step since science and technology innovation board comprehensively piloted the registration system. The result of the registration system reform is obvious. The number of IPOs in 2020 is almost double that in 2019.
"Looking ahead, with the further decentralization of the power of examination and approval from administrative agencies to exchanges, the IPO in the capital market will become more and more normal." Li Zhan said.
The number of listed companies in 12 provinces exceeds 100.
From the provincial distribution of A-share listed companies, due to the uneven economic development, the number and market value of listed companies in different provinces are also quite different.
Wind data shows that as of December 2, among the 31 provinces (autonomous regions and municipalities directly under the Central Government), only 12 provinces (autonomous regions and municipalities directly under the Central Government) have more than 100 listed companies.
Among them, Guangdong province ranks first with the total number of 826 A-share listed companies, taking 16% of the national share by itself, and its volume is almost equivalent to the sum of 19 provinces (autonomous regions and municipalities directly under the Central Government) with the number of listed companies below 100, with a total market value of more than 14 trillion yuan, which reflects the strength of the first strong economic province.
In terms of industry distribution characteristics, Guangdong’s real estate, medicine and biology, machinery and equipment, computers and electronics industries are relatively concentrated. Among them, China Merchants Bank and China Ping An, the listed companies with the largest market value, are both financial institutions.
The number of A-share listed companies in Zhejiang Province and Jiangsu Province followed closely, with 644 and 630 respectively, with a difference of only 14, with a total market value of 7.3 trillion yuan and 6.8 trillion yuan respectively.
It is worth noting that so far, there are 64 A-shares listed in Jiangsu Province this year, while only 44 companies listed in Zhejiang, and Jiangsu is accelerating to catch up with Zhejiang.
In terms of industry distribution, Jiangsu has concentrated power equipment, electronics, basic chemicals, machinery and equipment, automobiles, medicine and biology, and the largest enterprise with market value is Hengrui Pharma. In addition, Jiangsu has gathered nine listed banks, the number of which is second only to Beijing, among which there are many regional leading banks such as Jiangsu Bank.
Zhejiang’s biomedicine, light industry manufacturing, automobile, textile and clothing, power equipment and other industries are relatively concentrated, and Hikvision is the enterprise with the largest market value.
The total number of listed companies in Guangdong, Zhejiang and Jiangsu provinces has basically occupied half of A shares.
"The number of listed companies reflects the economic development and investment attractiveness of different provinces and regions. At the same time, the capital market is a market-oriented platform for providing financing and optimizing allocation, and the development of regional economy also needs the help of the capital market. " Tian Lihui, dean of the Institute of Financial Development of Nankai University, said in an interview with CBN.
In addition, there are 17 provinces (autonomous regions) with less than 100 listed companies, of which Qinghai Province has the least number of listed companies, only 11.
"China’s economically backward areas need to better promote enterprise growth, train entrepreneurs and management talents, guide, coach and supervise listed companies, and then drive regional development." Tian Lihui said.
Competition between cities
The number of listed companies is an important indicator of the city’s core competitiveness. At the same time, the increase in the number of listed companies can also promote the formation of urban industrial clusters and promote the efficiency of industrial chain coordination.
In terms of urban distribution, these 5012 listed companies are located in 423 cities (including municipalities) in China.
Wind data shows that among these 423 cities, only 79 cities have more than 10 listed companies, of which 8 cities have more than 100 listed companies. These eight cities are Beijing, Shanghai, Shenzhen, Hangzhou, Guangzhou, Suzhou, Nanjing and Chengdu.
Among them, Beijing, Shanghai and Shenzhen are in the first camp, with more than 400 listed companies, 454, 416 and 403 respectively. The distribution of listed companies in the three places has its own characteristics.
Among them, there are more listed central enterprises and state-owned enterprises in Beijing, and defense, communications, finance, computer and media enterprises are more concentrated. Especially in the financial field, there are 10 listed banks, all of which are state-owned and joint-stock banks except Bank of Beijing. In the communication field, China Mobile, China Unicom and China Telecom are all located in Beijing.
Compared with Shanghai and Shenzhen, the listed companies in Beijing are dominated by large-cap stocks, with the total market value of 454 companies approaching 20 trillion yuan, exceeding the total market value of listed companies in Guangdong Province, with an average market value of 43.3 billion yuan. Among them, there are three companies with a market value exceeding one trillion, namely Industrial and Commercial Bank of China, China Construction Bank and China Mobile.
The number of listed companies in Shanghai is second only to Beijing, with 416, which are mainly distributed in the pharmaceutical, biological, automobile, real estate, electronics and other industries, with a total market value of 7.4 trillion yuan, and the largest listed company with market value is Bank of Communications. As the main battlefield of science and technology innovation board, Shanghai has 78 listed companies in science and technology innovation board, which is the city with the largest number of listed companies in science and technology innovation board, and the background of "hard technology" is increasingly rich.
There are 403 A-share listed companies in Shenzhen, and their computer and electronics industries are particularly concentrated, with a total market value of 8.5 trillion yuan. Among them, the two companies with the largest market value are China Merchants Bank and China Ping An. Similarly, Shenzhen has the home advantage of GEM, with 147 listed companies on GEM, which is the city with the largest number of listed companies on GEM.
In addition, the number of A-share listed companies in Hangzhou has exceeded 200, reaching 206. After Beijing, Shanghai and Shenzhen, Hangzhou became the fourth city in China with more than 200 A-share listed companies, ranking first among all provincial capitals.
Song Huasheng, a professor at the School of Economics of Zhejiang University, said in an interview that the number and market value of listed companies in a region can well reflect the economic competitiveness of a city. From this dimension, Hangzhou has surpassed Guangzhou in the capital market and become the fourth city.
In addition, there are about 100 A-share listed companies in Guangzhou, Suzhou, Nanjing and Chengdu. However, judging from the number of newly listed companies since 2019, Suzhou is accelerating to surpass Guangzhou. In the past four years, the number of newly listed companies in Guangzhou has reached 49, while Suzhou has reached 62.
The number of listed companies in 80% cities does not exceed 10.
It is worth noting that Suzhou, as a non-provincial capital city, how to stand out among the municipalities directly under the central government and provincial capital cities, and even has the potential to catch up with Guangzhou?
Xu Tianshu, director of Suzhou Research Center of Jiangsu Changjiang Industrial Economic Research Institute and professor of Suzhou University of Science and Technology Business School, told CBN that the listing of a large number of enterprises in Suzhou is the result of Suzhou’s continuous strengthening and expanding manufacturing industry from township enterprises to foreign-funded enterprises to private high-tech enterprises for more than 40 years. For this reason, on the one hand, Suzhou has formed an effective way to support industrial development, and on the other hand, it has continuously optimized the business environment.
In fact, in order to cultivate more enterprises to go public, cities have also made great efforts to introduce relevant support policies.
For example, in the "Several Measures of Shenzhen Municipality on Further Promoting the High-quality Development of Enterprises’ Listing" issued in November, Shenzhen put forward the goal of over 600 listed companies at home and abroad by the end of 2025. 1.5 million yuan will be awarded for completing the shareholding system reform and listing counseling, and 1.5 million yuan will be awarded after the successful listing; 3 million yuan for direct listing on overseas stock exchanges; The reward for listing on the New Third Board is 500,000 yuan, and the reward for entering the innovation layer is 300,000 yuan.
At the beginning of the year, Hangzhou released the "Phoenix Action" Plan for Further Promoting High-quality Economic Development in Hangzhou (2021— In 2025), it is proposed to strive to add more than 120 listed companies by the end of 2025, and be equipped with corresponding incentive measures, such as giving a one-time financial subsidy of 2 million yuan to enterprises that have completed share reform and completed listing counseling and filing in the securities regulatory department. If the enterprises of this Municipality are directly listed at home and abroad, they will be given a one-time subsidy of 3 million yuan.
But at the same time, we can also see that among 423 cities, 344 cities have less than 10 listed companies, accounting for over 80%, of which 145 cities have only one listed company, accounting for 1/3.
But there are also many outstanding people among them. For example, Kweichow Moutai is the only A-share listed company with a market value of over 2 trillion yuan. Although there is only Kweichow Moutai as an "only child" in renhuai city, Guizhou Province, its total market value is already "as rich as the enemy’s province", almost equivalent to the province’s GDP in 2021 (1.96 trillion yuan).
In addition, there are only four listed companies in Ningde City, Fujian Province, and Contemporary Amperex Technology Co., Limited ranks first. Similar examples include Wuliangye in Yibin City, Sichuan Province.